SMG, owner of Virgin Radio, has reported a fall in total revenues for 2007, down £7.2 million to £184 million.
SMG said that this fall was mainly due to the sale of its outdoor advertising division Primesight (see
SMG Confirms Primesight Sale).
The company reported a near doubling in profits for Virgin Radio, up 87% last year to £4.3 million.
Yesterday it was reported that Absolute Radio has been selected as the preferred bidder to acquire Virgin Radio (see Absolute Selected As Virgin Radio Preferred Bidder).
The comapny also reported today a fall in profits before tax from £10 million in 2006 to £4.4 million last year, with operating profit down by £2 million to £16.4 million.
Richard Findlay, chairman, said: “2007 was a challenging year, but the result has been a substantial transformation of the company. The TV business has been restructured and is outperforming the market. Virgin Radio’s profit has nearly doubled.
“The Primesight sale was a success in a difficult market and our debt burden has been reduced by two thirds. Although the economic outlook is challenging, the business is now robustly positioned for profitable growth.”
Rob Woodward, chief executive, said: “In addition to the financial and operating changes we executed, 2007 was also a successful year of commercial and creative restructuring. Our viewer and advertising share in Scotland continues to strengthen, our content business has had its biggest-ever commission and we are about to re-launch our online business.
“Our turnaround plan is firmly on track, and for 2008, we are focused on delivering the financial benefits of restructuring and growth.”
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