Trading At GWR Remains Encouraging As Revenue Rises
GWR, owner of Classic FM, has today announced that the first half of this year has got off to a strong start as second quarter analogue revenues, which account for 92% of the group’s total income, jumped by 5% year-on-year.
Speaking at the annual general meeting (AGM), chairman Ralph Bernard said that from the three month period from April to June 2004, revenues at the Local Radio Group were up over 6%, while local and national also performed strongly, up 7% and 5% respectively.
However, Classic FM struggled during the quarter dogged by the negative impact on airtime sales during Euro 2004 in June, which caused revenues to fall by 2% but a strong bounce back is forecast for the classical music station during July when revenues are expected to be up 29%.
Bernard said: “Trading conditions remain encouraging. We expect total UK analogue revenues in July to be up by 10% on a like-for-like basis. The board remains confident in relation to the performance of the group for the current financial year.”
In March GWR increased its stake in the Digital Radio Group, the third London digital multiplex to 30.2% and speaking of the group’s performance in this market, Bernard added: “We remain focused on consolidating our leading position in the digital radio. We are particularly encouraged that the Government and OFCOM have opened the debate about a target date for analogue switch off for which we have long argued in favour.”
Bernard paid tribute to Deputy chairman, Roger Gilbert who stepped down from his post after the AGM and announced his successor as Alastair Ross Goobey. Speaking of the new appointment Bernard said: “I look forward to working with him as the group continues to strengthen its analogue operations to develop revenue streams from its digital assets and to look for opportunities afforded by changes in ownership regulation.”
For several months now, rumours have been circulating about a potential consolidation between Capital Radio and GWR. Further fuel was added to these earlier this month when City stockbroker’s, Panmure Gordon, said that a meeting with the finance director of Capital, left the team convinced ‘the two companies are far into negotiations’.
GWR Group: 020 7284 3000 : www.gwrgroup.com
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