Commercial radio group, GWR, has announced a negative trading statement with the Group’s like for like revenues falling by 3% year on year, in the quarter to December 31 2004.
The Group was affected by weak trading in the radio advertising market throughout October and November, but boosted by some growth during December.
GWR saw total revenue growth of 5% last month, strengthened by a 8% increase in national revenues. This strong performance came primarily from Classic FM, which enjoyed an increase in 10% on national revenues, year on year.
The quarter as a whole saw total revenue for the Local Radio Group, which generates about 70% of GWR’s revenues, total revenue fall by 3%, compared to strong growth of 13% in the equivalent quarter last year. Locally sourced revenues continued the downwards trend, decreasing by 5%, year on year.
Classic FM’s total revenues were down 7% in the quarter, compared with growth of 12% in the comparative quarter last year.
The Group said: “The inconsistent radio advertising market continues with the like for like total group revenues forecast to be down by 4%, year on year in January.” GWR added that forward visibility remains short term. However, the Group said that the impressive Christmas sales of digital radios were “most encouraging”(see Sales Of DAB Radios Exceed 2004 Estimations).
GWR is currently in talks with the Office of Fair Trading over undertakings required in its merger with Capital Radio, creating the UK’s largest radio group (see Capital And GWR Agree £711 Million Merger Terms). The merger is expected to take place in May of this year.
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