Interim Results Part 1
May 09 2005 - 4:31AM
UK Regulatory
RNS Number:0233M
Capital Radio PLC
09 May 2005
Preliminary results for the six months to 31 March 2005
09 May 2005
Financial Review
* Group revenue #58.5m (2004: #59.0m)
* Group underlying operating profit from analogue radio #13.6m (2004:#14.4m)
* Digital investment of #3m (2004: #2.4m)
* Underlying group profit before taxation of #10.8m (2004: #12.1m)
* Underlying earnings per share of 8.9p (2004: 10.1p)
* Dividend of 6p (2004 Interim: 6p)
Operating Review
* Capital Radio Group audiences increased to 7.9 million listeners in RAJAR
W1:05 (W4:04 7.7 million)
* Merger with GWR completed to create GCap Media plc, the UK's leading
commercial radio group
* GCap Media will reach 17.1 million adult UK listeners and command a 35.2%
share of commercial hours
Statutory Results
* Profit before tax #2.3m (2004: #6.5m)
* Basic (loss)/earnings per share of (0.4)p (2004: 3.6p)
David Mansfield, Chief Executive, commented:
"While the last six month period has been difficult in terms of our trading
environment, we have made significant strategic progress as a Group. The
highlight has been the successful formation of GCap Media, where we will see
operational benefits from the early integration of our two management teams"
Enquiries:
Capital Radio plc 020-7766-6194
David Mansfield, Chief Executive
Peter Harris, Finance Director
Jane Wilson, Communications Director
Finsbury Group 020-7251-3801
Rupert Younger
Julius Duncan
This document is available via the Internet at http://www.gcapmedia.com
'Underlying' results are presented to provide a better indication of overall
financial performance. The 'underlying' results exclude goodwill amortisation
and exceptional items.
As a result of the merger with GWR Group plc, the Group has changed its year end
to 31 March. Accordingly, the financial information set out in this document is
in respect of the six months ended 31 March 2005. Comparative information is for
the six months ended 31 March 2004 and is unaudited.
Preliminary results for the six months to 31 March 2005
09 May 2005
Overview
Market conditions have remained challenging in the past six months. Following an
October to December 2004 quarter decrease in revenue of 4%, radio revenues
increased modestly in the January to March 2005 quarter. This has resulted in a
1% decrease for the six months to 31st March 2005 year on year.
Following regulatory clearance, we received shareholder approval at our EGM in
April and dealings in the new GCap Media shares, issued to former GWR
shareholders, commenced on the London Stock Exchange at 8am today.
Separately, GCap Media will issue a statement on current trading within its
launch press release to be issued this morning. That statement covers trading at
Capital Radio Group and GWR Group for April and guidance on the trading outlook
for May 2005. GCap Media also released a statement confirming the disposal of
106 Century FM.
Financial Review
Group revenue for the first six months was down 1% on the previous year, to
#58.5 million (2004: #59.0 million). Underlying group operating profit from our
analogue radio operations was #13.6 million (2004: #14.4 million).
We invested #3.0 million (2004: #2.4 million) in our digital operations which
principally comprised transmission costs. Digital radio is a key part of our
strategy to expand our brands and grow our listening share throughout the UK and
we now own 59 licences covering 85% of the UK population. Our associated
companies, including Wildstar, CE Digital and IRN, contributed #1.1 million
(2004: #0.8 million) to the Group's profits, before an exceptional writedown of
our investment in Wildstar of #0.8 million, to reflect its disappointing trading
performance.
Group profit before tax, exceptional items and amortisation of goodwill was
#10.8 million (2004: #12.1 million). The tax on underlying profits was 30.2%
(2004: 30.5%) and underlying Group earnings per share were 8.9p (2004: 10.1p).
The profit before tax was #2.3 million (2004: #6.5 million). Basic (loss)/
earnings per share were (0.4)p (2004: 3.6p)
During the year we incurred some exceptional charges in relation to the
implementation of the merger with GWR of #2.2 million. The Group had net debt at
31 March 2005 of #34.9 million (31 March 2004: #32.0 million) and interest cover
before amortisation of goodwill and exceptional items of 12x (2004: 18x). The
interest charge was #0.9 million (2004: #0.7 million).
Dividend
The Directors have declared a dividend of 6.0p per share (2004 Interim:
6.0p per share) to be paid on 8 July 2005 to all shareholders in the enlarged
group on the register on 20 May 2005 (ex-dividend date: 18 May 2005).
Audience figures
Latest RAJAR audience figures for the quarter to 31 March 2005 show that Capital
Radio Group now reaches 7.9 million adult listeners across the most commercially
attractive markets in the UK. For GCap Media, this represents a reach of 17.1
million adult UK listeners and a 35.2% share of commercial listening hours.
95.8 Capital FM continues to lead the London commercial marketplace with 2.1
million listeners tuning in every week. The Johnny Vaughan breakfast show has
added listeners in the last two surveys, with 266,000 listeners more than its
nearest commercial rival. The total Capital FM network reaches 4.4 million
listeners, with 6 out of 8 stations commanding leadership in their respective
commercial marketplaces.
The Century FM Network recorded a record weekly reach of 2.08 million listeners
and total hours of over 17.1 million, in the latest RAJAR. The Network is now
the commercial leader in three of its TSAs (Total Survey Area). Xfm reached over
651,000 listeners in the latest RAJAR results. The Capital Gold Network
broadcasts on AM and DAB digital frequencies across the UK. Non-analogue
listening now accounts for 22% of a total station reach of 1.3 million
listeners. Choice FM's second survey across the total London TSA has seen a
second consecutive increase in reach to a record 525,000 listeners.
Revenue
In a difficult market, the performance of Xfm, the Century FM Network and Choice
FM continues to improve, with growth ahead of the industry average. Alongside
the improvement in our brand count, sponsorship and promotions activity have
attracted new advertisers to all of our brands. This includes Sky's sponsorship
of the Gold Network's breakfast show, Archers' sponsorship of Hairbrush Divas
for the Century FM Network and the renewal of O2's sponsorship of Traffic and
Travel on all our networks. Our alliance with IPC and MTV (RSVP) delivered
revenues from Fosters Australia, the Incredibles and Aussie Haircare across the
period.
We have seen the following performance in revenues from our top 15 advertising
categories:
Category Year on year change % of total
Retail -9% 17%
Motors 4% 13%
Gov/Social/Political -2% 12%
Entertainment & the Media 3% 11%
Business & Industrial -6% 11%
Travel & Transport 0% 7%
Entertainment 11% 6%
Food -31% 4%
Household Equipment -13% 5%
Computers 1% 4%
Finance -4% 2%
Household Supplies -18% 2%
Cosmetic & Toiletries -5% 2%
Pharmaceutical 30% 1%
Electronics -54% 0%
Source: Capital Radio Advertising, October 2004 to March 2005
The financial information referred to herein does not constitute the company's
statutory accounts for the period ended 31 March 2005 or the year ended 30
September 2004 but is derived from those accounts. Statutory accounts for 2004
have been delivered to the registrar of companies, and those for 2005 will be
delivered following the company's Annual General Meeting. The auditors have
reported on those accounts; their reports were unqualified and did not contain
statements under section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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