Wireless Group Reports Increased Losses In First Interim Results Since Flotation

The Wireless Group has released its first set of interim results since flotation on the London Stock Exchange in May (see Sharewatch). The group, headed by Kelvin MacKenzie, has seen losses increase from £10.1m to £25.7m year on year, partly due to the launch and marketing expenditure for sports radio station talkSport and the purchase of sports rights.

The results for the six months ended 30 June 2000 show that turnover for the group has trebled, increasing from £4.2m in 1999 to £13.8m this year, following the acquisition of The Radio Partnership (see Talk Radio Buys The Radio Partnership) and Independent Radio Group (see Talk Radio Buys IRG) last year. However, on a like for like proforma basis, it is up 18% or £2.1m.

The report also showed that national advertising sales were up 51% and that the stock market flotation had raised £36m. Chairman and chief executive, MacKenzie, said, “Our flotation will help finance the company in the next stage of its development. We will develop our existing portfolio of radio assets and also exploit their content and brands across new media platforms.”

One such development will be for the group’s national commercial station talkSport which is to be simulcast on the national digital multiplex operated by Digital One. New financial station talkMoney is due to launch in October 2000, while following its successful involvement in the bidding for the second London digital multiplex licence (see Second London Digital Radio Multiplex Prepares To Switch On), the group is now involved in bidding for other licences as part of the Digital Radio Group (see Digital Radio Group Announces Final Shareholder Line-Up). By the end of next year, the Wireless Group aims to have 2 national, 12 local and 5 regional digital services broadcasting on various platforms.

The Wireless Group: 020 7959 7800