INSIGHTanalysis: Smaller Radio Groups Outperform Major Operators
The UK’s smaller radio operators have shown stronger advertising revenue growth than their larger competitors in the latest round of financial results.
SRH saw its first half advertising revenues rise by 5.3%, with national spend up 8% and local up 3% for the six months to 31 March (see SRH Sees Radio Revenues Up 5% In First Half). In the full-year to March, Chrysalis Radio saw a massive 19.8% jump in airtime revenues (see Chrysalis Radio Outperforms Industry, As Group Profits Jump).
Meanwhile, Capital Radio continues to struggle and gave few details away in its H1 results (see Capital Takes Stock As Ad Slowdown Persists), but analysts put adspend down by 5% in the period. The market as a whole is thought to have been up 2% in the six months to March.
EMAP’s airtime revenues were down by 1% in the full year to March, in a market up by 3% (see City News). In the same period, GWR saw a drop of 2.3% overall, with national spend up 0.6% and local down by 6.6%
| UK Radio Operators Revenue Performance | |||
| Year On Year Growth (%) | |||
| Total | National | Local | |
| GWR Group (FY 31 March) | -2.3 | 0.6 | -6.6 |
| Scottish Radio Holdings (H1) | 5.3 | 8.0 | 3.0 |
| EMAP (FY) | -1.0 | – | – |
| Capital Radio (H1) | -5.0 | – | – |
| Chrysalis Group (H1) | 19.8 | – | – |
| MARKET FY | 3.0 | – | – |
| MARKET H1 | 2.0 | – | – |
| Source: Company data, MediaTelINSIGHT.co.uk | |||
Forecasts The latest forecasts from the Advertising Association predict that the radio sector will outperform the overall display advertising market throughout this year. In Q1 2004, display growth is forecast to jump above radio’s 4.8% to 5.8%, as shown.
| UK Advertising Quarterly Growth Forecasts | ||
| Growth (%) | ||
| Display | Radio | |
| Q1 2003 | 2.8 | 5.0 |
| Q2 | 3.8 | 4.1 |
| Q3 | 4.6 | 6.7 |
| Q4 | 5.1 | 5.4 |
| Q1 2004 | 5.8 | 4.8 |
| Q2 | 5.9 | 5.6 |
| Q3 | 5.9 | 5.5 |
| Q4 | 6.2 | 6.6 |
| Source: Advertising Association, March 2003 | ||
