UBC Sees Radio Revenue Turnaround After Weak Start

In June, UBC said that airtime sales for the first two months of its financial year were below expectations (see UBC Moves Into Profit In 2003, Airtime Outlook Mixed). The group then took ‘swift remedial action’ which has resulted in a ‘sharp recovery’ in revenues for June and July, according to chairman Michael Peacock.

The company’s production division and the Classic Gold network both traded in line with forecasts during the first quarter of the year, Peacock told the group’s AGM today.

UBC is anticipating a rise in listening figures to its Classic Gold Digital stations when Rajar starts to record digital listeners in Q4 this year.

Outlook Peacock says he is now confident in the prospects for the commercial airtime sales division for the remainder of this year, after seeing improving trading during the last couple of months.

He also pointed to a statement from electronics retailer, Dixons, which predicts that demand for digital radios is set to rise with the introduction of new products. Currently, sales of DAB receivers are tracking at around 50% of the portable radio category (by retail value) at Dixons and Currys.

Shares in UBC Media were up 6.1% at 35p by mid-morning.