RNS Number:1223L
Capital Radio PLC
15 May 2003


                                                                     15 May 2003



                               CAPITAL RADIO PLC

             INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003


Capital Radio plc, the UK's leading commercial radio group, today announces
interim results for the six months ended 31 March 2003.


Financial Highlights


* Group revenue of #56.9m (2002: #60m)

* Underlying profit before tax and goodwill of #12.0m (#14.2m)

* EPS before goodwill of 10.1p (12.1p)

* Interim dividend 6p (6p)


FSA Regulation

* Basic profit before tax #7.2 million (2002: #9.4 million)

* Basic earnings per share 4.3p (2002: 6.3p)


Operational Highlights


* Group commercial audience share 23.9% RAJAR Q1/03 (RAJAR Q1/02
23.9%)

* Little erosion of share by key commercial competitors in London

* Success of new 95.8FM Breakfast Show in London with 102,000
listeners added

* London commercial audience share 24.4% (Q4/02: 24.8%)

* Strong performance from FM Network outside London

* Record listeners for Century FM Network


David Mansfield, Chief Executive, commented:

"Our continuing strategy is to build our strong portfolio of complementary radio
brands to attract loyal listeners and advertisers. The introduction of
regulatory changes later this year will present transforming opportunities for
the UK commercial radio sector. Our strong balance sheet, operational synergies
and acquisition track record, provide us with the leading position to take
advantage of potential consolidation opportunities."


Enquiries:

Capital Radio plc
David Mansfield, Chief Executive                             020-7766-6194
Peter Harris, Finance Director
Jane Wilson, Director of Corporate Communications

Finsbury Group                                               020-7251-3801
Rupert Younger
James Leviton

This document is available via the Internet at http://www.capitalradiogroup.com.





                                Interim Statement


Overview and current trading

Advertising market conditions in the last six months have remained challenging
for the Group and for the industry as a whole. We anticipate our combined April
and May 2003 revenues will be broadly flat year on year. At this stage, June is
experiencing weak demand and we continue to manage our business on the
assumption that the advertising market will remain under pressure for the rest
of our financial year. However, we are focused on positioning the company for
growth over the long term and remain confident that we are in a strong position
to take advantage of the eventual advertising upturn.


Our continuing strategy is to build our strong portfolio of complementary radio
brands to attract loyal listeners and advertisers. The introduction of
regulatory changes later this year will present transforming opportunities for
the UK commercial radio sector. Our strong balance sheet, operational synergies
and acquisition track record provide us with the leading position to take
advantage of potential consolidation opportunities.


Financial Review

Group revenue for the first six months was #56.9 million (2002: #60.0 million),
which is in line with the guidance we gave shareholders on 26 March 2003. Group
operating profit before goodwill and exceptional items was #11.8 million (2002:
#14.4 million).


Underlying Group profit before tax and amortisation of goodwill was #12.0
million (2002: #14.2 million). The tax on underlying profits was 31% (2002: 30%)
and underlying Group earnings per share were 10.1p (2002: 12.1p).


The basic profit before tax was #7.2 million (2002: #9.4 million). Basic
earnings per share were 4.3p (2002: 6.3p).


We invested #2.0 million (2002: #1.5 million) in our digital operations which
principally comprised transmission costs. Digital is a key part of our strategy
to expand our brands throughout the UK and we now own 48 licences covering 85%
of the UK population. Our associated companies, including Wildstar, CE Digital
and IRN, contributed #1.0 million (2002: #0.7 million) to the Group's profits.


The Group had net debt at 31 March 2003 of #33.9 million (30 September 2002:
#29.0 million) and interest cover before amortisation of goodwill and
exceptional items of 17x (2002: 17x). The interest charge was #0.8 million
(2002: #0.9 million).


Dividend

Our solid cashflow position allows us to maintain our dividend level despite
uncertain operating conditions. The Directors have declared an interim dividend
of 6.0p per share (2002: 6.0p per share) to be paid on 21 June 2003 to
shareholders on the register on 23 May 2003 (ex-dividend date: 21 May 2003).


Operational Review


Audience figures

In a highly competitive market the Group maintained a commercial audience share
of 23.9% (RAJAR period to 23 March 2003) with significant successes across the
company. In London, the 95.8 Capital FM breakfast show gained over 100,000
listeners and increased the lead on its nearest commercial competitor. While the
rest of the day on 95.8 saw a decline, this was offset by growth outside London
in the Capital FM, Century FM and Gold networks.

                                           Quarter 1    Quarter 4    Quarter 1
                                                2002         2002         2003
               ------------------------  -------------     --------     --------
Weekly listeners (m)                             8.1          7.8          7.7
Proportion of potential listeners (%)             28           27           27
Total hours listened (m)                          79           74           74
Market share (%)                                  12           12           12
Share of commercial listening (%)                 25           24           24

Source: RAJAR


Capital FM Network

In London, at 95.8 Capital FM, which represents 43% of network listening hours,
the new Breakfast Show added 102,000 listeners to achieve a reach of 1.5 million
(Q4, 2002: 1.4 million). With a focus on increasing listener figures for the
show, we introduced new features, co-presenters, competitions and music policy.
The show continues to be London's leading commercial breakfast show and in the
last RAJAR quarter has increased the gap on its nearest commercial competitor by
18% to 616,000 listeners. We recognise that more progress needs to be made
throughout the rest of the day and we will continue to focus on making
programming improvements to replicate the success we have achieved with the
breakfast show.


Outside London, the FM network performed well. Red Dragon FM in Cardiff achieved
record listener numbers and with a reach of 37% maintained it's position as the
leading station in the local marketplace. Power FM and Invicta FM continue to be
the leading commercial stations in their local marketplaces and in central
Scotland, Beat 106 now has more listeners than Radio 1. The Capital FM network
continues to attract new talent including Becky Jago, Katie Hill, Phil Upton and
more recently Emma Forbes who will co-present the 95.8 Capital FM weekend
breakfast show.


Century FM Network

As part of our ambition to build the UK's leading adult contemporary radio
brand, we have made successful changes that include a focus on more mainstream
adult contemporary music. In the first quarter of 2003, the network achieved
record reach and share, increasing by over 100,000 to 1.8 million listeners (Q4,
2002: 1.7 million). 105.4 Century FM is now the largest commercial radio station
in the North West beating its nearest commercial competitor by 177,000
listeners. In addition, the Radio Authority has recently allowed us greater
format flexibility to improve the listener experience on the network.


Xfm Network

The latest RAJAR figures showed Xfm's reach at 442,000 listeners (Q4, 2002:
484,000). However, listening to Xfm continues to grow with commercial share
recording a 60% year on year increase to 3.3%. As part of our strategy to
develop the brand on other platforms, in addition to FM in London, it now
broadcasts on 17 digital radio licences, internet, Sky and ntl across the UK.
Xfm was voted 'Best Music Station' at the 2003 Music Week awards and in May, won
3 coveted Sony awards including Gold for 'Best Breakfast Show'.


Capital Gold Network

The Capital Gold Network of AM stations continues to maintain consistent
listening figures and in London, with over 1 million listeners, outperforms a
number of competitor stations broadcasting on FM. Capital Gold Manchester, our
most recent acquisition, increased the number of listeners four-fold and
achieved the station's highest ever reach. As an AM format, Capital Gold will
gain significant benefit from transmission on DAB digital radio on CD quality
sound.


Revenue

In a challenging advertising environment, our commercial division attracted blue
chip clients to Capital's complementary portfolio of brands. Kelloggs launched a
high profile sponsorship of the breakfast shows across the Capital FM and
Century FM networks and Woolworths were signed as sponsors of the hit40uk chart
show. In telecoms, we signed Hutchinson 3G, O2 and Telewest Talk for advertising
and sponsorship deals. In cross platform promotion, Rimmell has renewed its
commitment to our events by supporting Party in the Park in London. The key
growth categories for advertising revenue were retail, entertainment and
household goods.


We continue to focus on growing non-traditional revenues far more aggressively
and have created the new position of Commercial Development Director. We
recognise that there are commercial gains to be made by examining new digital
platforms and technologies and harnessing the strengths of our brands. We have
already enjoyed successes with branded CDs, events and Wildstar.


Digital

Digital development is a core part of our national strategy to extend Capital's
brands across additional platforms and we have taken a lead in the growth of DAB
digital radio in the UK. As multiplex owners, content providers and data
spectrum owners, we have strength and depth in key metropolitan areas offering a
competitive advantage and potential increase in market share as digital radio
rolls out.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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