Ad Despondency at GCap

26 July 2006

LONDON: Britain's largest commercial radio broadcaster, GCap Media, says July revenues are likely to be 14% lower year-on-year as the slump in the UK radio advertising market continues to bite.

Lower spending before, during and after the soccer World Cup may have been a factor for the heavy sales fall, but the broadcaster also conceded that recent trading had been weaker than expected, with future income visibility remaining limited.

Shares fell 7% as analysts anguished over the latest trading figures from the company, whose portfolio holds fifty-seven analogue and 100 digital stations including Capital Radio, Classic FM and Xfm.