As Scottish Media Group (SMG) prepares to issue its half year results on Thursday, Merrill Lynch has said it predicts advertising revenues for the group to beat expectations.
In its latest broadcasting update, Merrill Lynch, says it now expects revenues at SMG to grow by 5.5% from 3.5%, topping £89.2 million from January to June this year. Strong local and government spending are expected to be the driving force behind the better than expected television trading results.
Merrill Lynch has also adjusted its full-year estimate for Virgin, lowering revenues to £23.3 million from £24 million, as a result of poor RAJAR results in 2003 and quarter one 2004.
In June, it was reported that SMG was in the process of sounding out a potential buyer for Virgin Radio, which it hoped to sell for £130 million (see Virgin Radio May Be Sold As SMG Predicts Positive Year).
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