GCap Media have announced they are now trading in line with the rest of the industry, after recovering from a difficult few months. In a trading update issued today, the company said they expect like for like revenues for the six months to 30th September 2006 to decline by around 4% against last year’s pro-forma results.
Total revenues for the six months ending 30 September 2006 are forecast to decrease by approximately 9% year on year against pro-forma results.
The groups said today: "As anticipated, July trading proved to be particularly difficult however more recent months have shown an improvement on that performance. Although the market remains weak and visibility poor, we currently expect GCap Media’s advertising revenue performance, excluding Capital Radio, to be in line with the radio sector as a whole for September and October."
Enhancing Capital Radio’s performance remains top priority for GCap: "Our strategy for the station is clear and we have made good progress in its implementation. Since the beginning of the year we have streamlined the station's operations, strengthened the on-air talent, positioned Capital firmly as London’s hit music station, and introduced the new inventory policy which enhances the overall experience for listeners. These inventory changes have succeeded in achieving our initial objective of creating greater commercial effectiveness and value for our advertisers but have significantly reduced the inventory available for sale. We have also brought in new management with Scott Muller as Programme Director and Nick Button as Marketing Director."
GCap believe the time is right to begin marketing Capital Radio for the first time since 2005, which will start shortly, expected to raise listener figures in 2007.
In closing, today's trading update said: "Given the current advertising market conditions, we continue to manage the business prudently. We believe that the changes we are making strengthen the business and consolidate our position as the UK’s leading radio group."