On a poor day for UK media stock in general, London-based commercial radio group Capital Radio yesterday issued a profits warning, triggering a swift fall of 207.5p in its share price to 670p.

Blaming the current slump in advertising, Capital warned that its full-year profits could fall by around 10%, predicting that like-for-like revenues will increase by only 2% over 2000 – half the figure forecast in January. The news provoked analysts to lower their profit expectations for the group from £39m–£40m to £34m–36m.

Capital was not the only radio group to see its stock slide: Scottish Radio plunged 100p to £13.75; Chrysalis was down 33.5p to 259p; GWR, owner of Classic FM, fell 82.5p to 422.5p; and Wireless Group, owner of TalkSport dropped 5p to 158.5p.

Nor was the rest of the UK’s media industry untouched by stock market jitters. Granada watched its shares fall 13p to 169.5p, Pearson plummeted 102p to £12.29 and Reuters dropped 57p to 770p.

News source: Financial Times