The shape of things to come was signalled yesterday by Capital Radio Group which issued its second profits warning in as many months. It also posted interim pre-tax profits, 18% down to £18.3m despite a 22% rise in revenues to £72.6m
Declining ad sales, the broadcaster warned, would reduce its full-year profits by around 25%. As recently as March, Capital cautioned that profits would be just ten per cent below those of 2000 [WAMN: 23-Mar-01].
In common with many other media companies, Capital is saddled with largely artificial comparisons with 2000 – a bonanza year inflated beyond the growth norm by the massive and short-lived boom in the telecoms and dotcom sectors.
The group also revealed that it is mulling its first expansion outside the UK with the acquisition of RTL’s seventeen European radio stations, primarily covering France and Germany and generating annual revenues of some £151 million.
News sources: Financial Times; The Times (London)