SRH Sees Radio Revenues Up 5% In First Half

Including the effect of acquisitions during the period, advertising revenues were up by 33% year on year. National advertising, up 8%, was stronger than local spend which grew by 3%. Local advertising accounted for 53% of SRH’s total advertising revenues in H1, the same proportion as in H1 2002.

The operating profit margin for the radio division also remained unchanged year on year at 27.9%.

SRH yesterday agreed to buy a 49% stake in Vibe Radio Services from GWR Group, giving it 100% control of the business (see GWR Sells Vibe Following Competition Rebuttal).

Overall group turnover was up by 28% to £41.5 million including acquisitions, with like-for-like growth at 7%. Pre-tax profits more than doubled, from H1 2002’s £3.4 million to £6.9 million this time.

Score Press The company’s newspaper publishing division, Score Press, saw like-for-like advertising revenues rise by 9% in H1; circulation revenues grew by 7%.

The newspaper business benefited from favourable exchange rates during the period and in constant currencies ad revenues were up by 6%, with circulation revenues more or less flat on last year.

Outlook Scottish Radio feels well-placed in both the radio and press markets, with strong H1 profits in both these areas of business described as ‘very encouraging’. The company says that trading in the second half has started well and backs up the expectation of good results for the year as a whole.

Yesterday’s first half results by rival radio group, GWR, were weaker that SRH’s, with national revenues rising by just 0.6% and local spend showing a 6.6% decline (see GWR Achieves Objectives In ‘Difficult’ Conditions).

Shares in Scottish Radio Holdings were up by 4.9% at 702.5p following the release of the results this morning.