Leading UK radio broadcaster hit by advertising weakness
The UK’s biggest commercial radio broadcaster today said its decision to slash the number of adverts on flagship station Capital Radio contributed to a sharp fall in profits.
GCap Media said pre-tax profits were down 40% to £22.2m (€32.5m) in the 12 months to March 31 after advertising revenues fell.
The company, which recently merged with Classic FM owner GWR, said group revenues were expected to be down 4% in April and May.
GCap added that revenues were likely to be down only 1% over the same period excluding Capital Radio, where revenues are forecast to fall 26% in the two months because of the new advertising policy.
In December, Capital Radio promised listeners there would “never be more than two ads in a row”.
GCap chief executive Ralph Bernard said: “The changes we are making to programming and advertising inventory position us well for future growth.”
