Earnings prospects remain “attractive”, insists Scottish Radio Holdings, despite a 27% freefall in pre-tax profits – down to £5.7 million ($8.31m; €9.02m) for the six months ending March 31.
The group’s balance sheet, however, will shortly be £57.5m healthier thanks to the sale of its Score Outdoor advertising division to Clear Channel UK. This, said SRH chairman Lord Gordon of Strathblane, will allow “greater focus and increased financial power to pursue opportunities in a consolidating marketplace for both press and radio”.
Local ad revenue on a like-for-like basis for the six-month period grew year-on-year by 5%, but national ad revenue decreased by 8% for the same period. SRH attributes the health of its local business to a strategy of maintaining a strong local sales force in its radio division, rendering it less vulnerable to the national ad downturn.
SRH assets include radio, press and outdoor businesses covering Scotland, the English Midlands and South West, Northern Ireland and Eire.
Data sourced from: BrandRepublic (UK); additional content by WARC staff