Capital gives City listeners something to cheer at long last
Friday 14 November 2003
Capital Radio shares soared 9 per cent yesterday after the company revealed an apparent recovery in advertising revenues.
Although the radio group reported an 18 per cent drop in pre-tax profits to £22.8m for the year to 30 September, and its recent audience figures have been poor, the market focused on the ad sales news. Capital said revenues were up 8 per cent in October, 4 per cent in November and indications for December were that it would also be in positive territory. That would mean six months of growth, starting in July.
David Mansfield, Capital's chief executive, said: "We've now had two successive quarters of growth. We're encouraged by that. Things are better than they were."
Capital Radio shares closed up 39p at 471p. The company did not make a forecast for 2004 but pointed to a prediction from Zenith, the media buying group, which sees growth of 5 per cent next year for the radio sector.
However, the company and analysts pointed out that Capital's figure for November in particular was up against a very weak comparative last year - which saw sales fall 14 per cent.
In the recent official listening figures for the third quarter, the company's flagship station, London's 95.8FM, showed a disastrous lurch down in performance, losing its market share lead in London for the first time, to rival Heart, which recorded more audience hours. Its lead in the absolute number of listeners, for which it is able to charge a premium advertising rate, was maintained, but is now just 3 per cent ahead of Heart, from a 12 per cent gap just three years ago.
Simon Mays-Smith, an analyst at CSFB, said: "The big issue is how much [ad] yields will come under pressure. If 95.8 loses its lead altogether, it becomes much more expensive to regain it."
Mr Mansfield said: "We've acknowledged the issues [with 95.8] and dealt with it."
It is thought that Capital Radio will complete its acquisition of London's Choice FM earlier than thought, in January, paying £17m.
- 1 A daily walk 'can add seven years to your life'
- 2 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 3 Chrissie Hynde says women who 'wear high heels and dress provocatively entice rapists'
University to mark down students who say 'illegal immigrants' in class
Rules on 5p plastic bags likely to lead to arguments at the check-out
The nine most warmongering countries in the world revealed
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
VMAs 2015: Kanye West to run for US president, Nicki Minaj calls out Miley Cyrus and the rest of tonight's winners
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...