GCap Media Plc, the U.K. Radio group slashed its dividend and planned to sell nine analogue stations in the south-west, north-west and north Wales as "extremely disappointing" results were reported on Thursday.
Chief Executive Ralph Bernard told investors that no significant financial benefits can be seen till the end of 2008 as the group readies itself to restructure its flagging Capital Radio station.
GCap Media, which is the UK's largest commercial radio company, said its operating profits in the half-year end up to September plunged by 27 per cent to £14.7 million while revenues fell by 11 per cent at £111.6m.
It announced the merger of its analogue station Capital Gold with national digital station Life, which would be later rebranded as one national station. It has also plans of launching Xfm Manchester, a digital radio station, apart from creating a national network for youth music station Xfm. It will rebrand Beat 106 in Scotland and its digital station The Storm as Xfm.
At Capital, the company is planning to launch a new advertising policy in December. This will involve slashing the number of advertising minutes by half and only broadcasting a maximum of two adverts in a row.
Mr Bernard said:” These results are extremely disappointing and I believe in no way reflect the full potential of the portfolio of assets owned by the group. We have completed a root and branch review of our businesses and we have developed a clear plan of action which will revitalise GCap, particularly Capital Radio, and return it to growth.”
He also expected see positive results in terms of listeners by the end of 2006, and assured a payback in third year.
Capital Radio, which recently crashed to third place in London's highly competitive radio arena, would be re-launched in January, wherein the company intends to insert news, new music and features schedule.
Numis Securities' Lorna Tilbian said: “We view this as a very aggressive initiative with significant execution risk.”
Posted
on : Fri, 25 Nov 2005 08:40 GMT | Business News
By : Salim Patel
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