Media Market Round-Up

Media Market Round-Up

Compiled from this week’s City News reports on MediaTel Insight:

• The Future Network, which was expected to announce interim results today, has this morning issued a statement saying that shares have been suspended pending a further announcement later today. Coverage will follow on NewsLine and MediaTel Insight as further information emerges.
• On Wednesday DMGT became the first of several media companies to produce trading statements this week. It reported that prior to the US terror attacks advertising revenues had been showing signs of improvement, but admitted that the confidence dive which has followed 11 September will have a negative effect on future results.
• Also on Wednesday, Tempus, whose future remains uncertain in terms of the WPP bid, released interim results. These showed that the company has outperformed the advertising market in what chariman Chris Ingram described as “one of the most difficult years our industry has faced.” Revenues showed year on year growth, but pre-tax profits fell.
• Emap released a trading statement on Thursday saying that underlying profits had risen an estimated 3% during H1, but that advertising revenues were still falling. The forecast for the second half was for further slowdown, and cuts were announced in digital spending.
• Another trading statement came from Capital Radio, which pointed to the fact that from April to June this year radio revenue was down 16% compared to the strong corresponding quarter in 2000. The July to September quarter is expected to be down 9% and therefore the revenue figure for the year is expected to come in at -6%. The company stated continued caution, but added, “we believe the longer term prospects for radio advertising are very positive.”
• Maiden’s half year interim results, out on Thursday, reported a strong performance, with sales up 8.4%. This figure compared well to the outdoor market as a whole, which rose 3% over the same period. However, once again, the spectre of the terrorist aftermath was raised, as the company warned that the events had had “an extraordinary effect on what was an already weakening world advertising market.”
• The trading statement released by GWR also admitted the effects of the downturn. Taking into account acquisitions, like for like revenue is expected to be an estimated 3.5% down year on year when results are released. The company said it remained “extremely cautious” about forecasting revenues.
• The dark mood continued at another radio company, Scottish Radio Holdings, which has forecast a 3% drop in radio revenues for the year to September 30. This would, however, see it outperform the declining radio market, and for the financial year as a whole, the group described its revenue performance as “robust”.

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