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 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Art Garfunkel: Paul Simon is a 'monster' with a Napoleon complex
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...