Following weak trading at the end of 2006, Chrysalis has reported its radio revenues returned to growth last month, in a statement released today ahead of this morning's AGM. Turnover was up 5 per cent, against a 10 per cent decline last year.
Chris Wright, Chairman of Chrysalis Group Plc will provide the following trading update at the company's AGM which will be held today at 11am.
'[i]As in previous years, I will take this opportunity to update you briefly on the performance of the group for the first five months of the 2007 financial year.
I am pleased to say that we have had an encouraging start to the current financial year and that trading across both our radio and music divisions remains in line with the Board's expectations.
[b]Radio[/b]: Although trading conditions for the UK radio industry remained challenging throughout the final calendar quarter of 2006, at Chrysalis we have seen a return to positive revenue growth in the first few weeks of 2007. As such, whilst revenues for Chrysalis Radio in the four months to 31 December 2006 declined by 10% (which we believe is in line with the overall market), revenues for the month of January have showed encouraging year-on-year growth of 5%.
Given this improvement in the radio advertising market, coupled with last week's announcement of the strongest ever set of Rajar audience figures for Chrysalis Radio, which showed Heart as both the leading London commercial station and the most listened to ILR network across the UK, we remain confident that we are well positioned to meet the Board's expectation of flat year-on-year revenues for Chrysalis Radio in the 2007 financial year as a whole.
Music: As anticipated, our music publishing business is starting to see the initial royalty receipts from the international chart successes of the second half of the 2006 financial year, which included hit albums from Gnarls Barkley, The Raconteurs, Ray LaMontagne, Feeder and The Dixie Chicks. In addition, a number of our high profile new signings made in the second half of 2006 are already having success with their current projects which include Damon Albarn's 'The Good, The Bad and The Queen' and Thom Yorke's 'The Eraser'. Artists and writers represented by Chrysalis Music have received a record 41 Grammy nominations, including 3 for 'Record of the Year' and also 7 nominations for the Brit Awards. Lasgo Chrysalis also continues to perform in line with the Board's expectations, in spite of the ongoing weakness in the retail sector of the entertainment products market.
I therefore remain confident that both our Radio and Music businesses remain well placed to outperform the sectors in which they operate in the current financial year.[/i]'
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