Sharewatch: Capital Falls On Poor Guidance

Capital Radio was seen in focus yesterday, down 4.33%, after reporting it is expecting a 4% fall in like for like airtime advertising revenues for the year ending 30 October, despite a gradually improving environment (see UK Radio Groups See Slight Upturn In Uncertain Market).

Meanwhile, rival radio company, GWR, fell by 1.09%, after revealing its Local Radio Group is trading strongly, whilst Classic FM revenues remain volatile.

WPP was seen in focus, down 1.32%, despite positive comments from Sir Martin Sorrell, who claimed the revival in the advertising economy is well and truly underway, with the US driving the upturn, and signs are that 2004 will be a good year for the industry.

However, the market did not share his outlook and the media sector was hit hard by bearish sentiment and continued concerns over the fragile state of the US economy.

The closing prices of media company shares on Thursday were: