Sharewatch: Radio Groups Mixed As Revenue Increases

Britain’s radio groups saw a mixed performance yesterday, with a number of companies adding significantly to their totals as the latest figures from the Radio Advertising Bureau indicated a strong financial performance from the commercial radio sector, with with revenue increasing by 6% year on year during the third quarter of 2004.

The increase takes the industry’s total revenue to more than £158.7 million, following heavy investment from telecoms, motor and retail brands. Amongst those enjoying growth yesterday were Capital Radio, which saw its price climb by 0.88% to 428˝p, elsewhere Emap rose by 2.23% to close at 823˝p (see Big Brand Investment Boosts Commercial Radio Revenue).

US-publishing company Pearson saw an increase yesterday, adding 0.74% to its share price to close at 609p following a positive trading statement issued to investors.

The company, which publishes the Financial Times, reported a rise in sales of 2%, while operating profit has risen by 7%. The company also claims that free cash flow is well ahead of 2003, and that, at this stage, it remains on track to achieve underlying progress on earnings, cash and returns in 2004 (see Financial Times Expected To Break Even By Year End).

Independent News & Media also saw an increase, rising by 0.64% to close at 156žp as the company announced a management reshuffle at the Independent to boost its creative advertising solutions department and increase the range of offerings available to clients (see Independent Reshuffles To Strengthen Solutions).

The FTSE 100 made improved progress yesterday, adding 16.8 points to close at 4,734.5 while the FTSE 250 added 24.3 points to close at 6,495.7.

The closing prices of media company shares on Wednesday were: