Sharewatch: Capital Boosted As Profits Increase

Capital Radio was seen in focus yesterday with shares climbing 0.83% higher to close at 394p after announcing that it had increased revenue by 4% to £199.9 million and group profit by 4% to £23.7 million for the year to the end of September.

However, the broadcaster, which is currently ironing out details of its £711 million merger with GWR, also warned that the fourth quarter of this year looks more challenging as the market experiences a slowdown in spend from key FMCG advertisers (see Capital Remains Cautious Despite Healthy Profits).

Meanwhile, Capital’s merger partner GWR continued to perform poorly with shares dipping by 1.74% despite its recent revelation that profits had risen by 12% to £6.9 million in the six months to September. However, the company also warned that conditions in the radio advertising market remain tough (see GWR Profits Up Despite Weak Advertising Market).

Elsewhere, ITV dipped 0.23% lower to finish at 109źp as pressure mounted on Ofcom to allow the UK’s largest commercial broadcaster to reduce its obligation to produce non-news regional programmes in England from a minimum of three hours a week to one and a half.

The benchmark FTSE 100 index rose by 0.7% close at 4,753.4 following a forecast beating quarter from BP and Shell. the mid-cap FTSE 250 inched up by 0.2% to 6,956.4.

The closing prices of media company shares on Thursday were: