SMG has announced that it its television airtime revenues are expected to decline by 7% for the first half of 2007, owing to a weakness in interactive TV revenues.
Virgin Radio revenues have grown by 8% also outperforming the market, and displaying particularly strong online revenue growth, said SMG.
Pearl & Dean has also seen strong revenue growth of 7% outperforming its 5% growth in screens, while Primesight has grown revenues by 8% on flat panel numbers.
Richard Findlay, SMG chairman, said: “There has been much business activity since the boardroom changes in February and the appointment of Rob Woodward as chief executive. Following renegotiation of our banking facility we have reached agreement with our banks on a renewed facility until September 2008.
“We have appointed a new leadership team to work with Rob; we have terminated the sale process of Primesight for the time being and are re-energising the sale of Pearl & Dean. In addition, we have announced an IPO of Virgin Radio.
“We believe a flotation of Virgin Radio will create a strong and clearly focused radio business, with a powerful brand and will provide an attractive pure play investment opportunity. Once completed, it will leave SMG with a stronger balance sheet on which to move forward and rebuild shareholder value.”
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