Chrysalis sees revenues plummet

by Sarah Crawley-Boevey, Media Week 14-May-07, 13:00

LONDON - Chrysalis Radio’s revenues are down 9.1% to £30.1m from £33.1m last year, according to the group’s interim results for the six months to February.

Talk station LBC is said to have increased its revenues by 2.5% since September 2006 and is "on track" to deliver a profit in the current financial year.

However, the company's statement did not touch on profit or loss statistics for Heart, which last week lost the number one spot in the Rajars, or the Galaxy network, which has joined forces with Emap's Kiss network for a join advertising initiative since the last results statement.

The Group is struggling to find a buyer for its radio stations, according to reports in the weekend press.

The Chrysalis Group's statement to the City today (Monday) said that conditions for the first six months of the financial year "remained volatile and fairly weak on a month-by-month basis" and bosses including chief executive Phil Riley (pictured) believe the decline in revenue is "consistent with that of UK radio advertising as a whole", saying the results were in-line with the board's expectations.

Despite predictions that third quarter revenues are likely to be flat, digital revenues increased by 79% in the period and forward bookings across the board for the fourth quarter are "showing double digit growth" over last year.

The board is therefore maintaining its prediction that radio ad revenues for its complete financial year will not drop from the £65.6m achieved last year.