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UK Media Group Chrysalis Pulled Into Loss By Internet Arm

News, 23 November 2001

British media group Chrysalis fell into the red for its fiscal full year, dragged down by losses at its internet division.

The company posted a £9.4 million write-down on the value of its new media arm, which also reported pre-exceptional operating losses of £14.5m, pulling the company as a whole down to a pre-tax loss of £16.8m from £900,000 profit last year.

However, excluding the internet division Chrysalis posted an operating profit of £8.2m, up 46%. The group was boosted by a strong performance at its radio group – the fourth largest in the UK – where profits jumped 45% and turnover 18%, as well as its TV arm, which posted a five-fold leap in operating profits to £2.56m on a 7.5% rise in turnover to £61.9m.

Chrysalis said healthy audience growth at its Heart and Galaxy radio stations meant the group is well-placed to benefit from any improvement in the ad market.

It confidently predicted “further revenue growth in the current year in spite of [present] macro-economic conditions,” while admitting it was “difficult to predict with any accuracy the timing of the advertising upturn.”

News source: Financial Times