Sharewatch: GWR Dips Despite Profit Increase

Commercial radio group GWR performed poorly yesterday with shares dipping by 4.13% to close at 232p, despite revealing 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.

GWR, which is currently waiting for regulatory approval concerning its merger with Capital Radio, said that advertising revenue at its flagship Classic FM station was up by 5.3% for the period and that total revenue rose by 6.4% (see GWR Profits Up Despite Weak Advertising Market).

Meanwhile, global news and information provider Reuters inched up by 0.32% yesterday to finish at 390źp after confirming that its has put its Instinet electronic shares trading business, worth around £1.1 billion, up for sale. A divestment could lead to a significant windfall for shareholders.

UBC was the best performer in yesterday’s media market with stock rising by 3.77% to close at 27žp. The UK’s largest independent radio production company recently announced increased profits and rising turnover in its interim results (see UBC Profits Rise As Digital Revenues Revealed).

Concerns over a weakening housing market led to uncertainty in the wider market yesterday after two heavyweight housing brokers slashed their house price forecasts. The FTSE 100 rose by 0.2% to 4,742.4 and the mid-cap FTSE 250 inched up by 0.4% to finish at 6,569.6.

The closing prices of media company shares on Tuesday were: