Sharewatch: GWR Tumbles Despite Rising Profits

The UK’s most listened to commercial radio group, GWR, put in a poor performance last week, losing 7.22% week on week to close at 228p on Friday despite reporting a rising profits in interim results.

The broadcaster reported increased profits of £6.9 million in the six months to September, a year on year rise of 12%, but warned that the radio advertising market remained weak. The company, which is currently waiting regulatory approval of its merger with Capital Radio, saw the success of its flagship station Classic FM boosted by the success of Classic FM TV, Classic FM Magazine and other brand extensions such as CDs (see GWR Profits Up Despite Weak Advertising Market).

Meanwhile, Capital Radio also saw a dip in share price, losing 3.19% to close at 394p on Friday. Capital also reported rising profits last week, with revenue rising by 4% to £199.9 million as the broadcaster echoed GWR in predicting a slowing of the advertising market (see Capital Remains Cautious Despite Healthy Profits).

Newspaper giant Trinity Mirror was one of few media stocks to see a rise last week, climbing by 0.32% week on week to 630p on Friday. Last week saw the publisher appoint Matt Harrison to the newly created position of newspaper sales director in its regional newspapers division. The move marks an increased focus by Trinity on its regional operations, an area of its business which chief executive Sly Bailey has been keen to improve (see Trinity Mirror Appoints Regional Newspaper Sales Director).

The closing prices of media company shares on Friday were: