'News: EMAP Radio Half-Year Results Outperform UK Commercial Radio Sector' by Grant Goddard
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News story about publication by UK media owner EMAP plc of half-year financial results that show its radio division outperforming the sector average, written by Grant Goddard in November 2005 for The Radio Magazine.
![News: EMAP Radio Half-Year Results Outperform UK Commercial Radio Sector Page 2
©2005 Grant Goddard
In its interim results for the half-year ended 30 September 2005, EMAP
Radio's revenues were up 2% and profit increased from £9m to £11m on a
year-on-year like-for-like basis, whilst operating margins improved from 19% to
22%.
EMAP said that it had achieved “continued outperformance in a very
competitive market” in which sector revenues were estimated to have fallen by
7%. EMAP said that the integration of former Scottish Radio Holdings stations
was “progressing well” and was on track to deliver the £5m of cost savings
identified at the time of acquisition. Tom Moloney, group chief executive, said:
“Radio continues to outperform the market, demonstrating the strength of our
position in the commercial radio sector."
The results made no mention of the long-term decline of audiences for EMAP's
analogue stations, and only referred to listening hours being “broadly level
year-on-year” for the group as a whole. The value of local advertising fell by
9% year-on-year, and London station 'Kiss FM’s decline in listening share from
4.5% a year ago to 3.5% last quarter was said to be “anticipated”.
Moloney said: "We feel that, while we don't have the biggest commercial radio
business in the UK, we have the strongest, the most coherent and probably
the most profitable. More importantly, the business is best positioned for the
future." He conceded that the decision to rebrand local stations in the North
had not been a complete success. "You have to ask yourself all the time what
is it about radio that makes people want to turn it on, and it's not just music,”
he said. “The music is important but it's also about getting the tone of voice
and local content right.”
[First published in 'The Radio Magazine' as 'Emap Outperforms But May Become Bid Target', #710, 16 November
2005]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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'News: EMAP Radio Half-Year Results Outperform UK Commercial Radio Sector' by Grant Goddard
- 1. NEWS: EMAP RADIO HALF-YEAR RESULTS OUTPERFORM UK COMMERCIAL RADIO SECTOR by GRANT GODDARD www.grantgoddard.co.uk November 2005
- 2. News: EMAP Radio Half-Year Results Outperform UK Commercial Radio Sector Page 2 ©2005 Grant Goddard In its interim results for the half-year ended 30 September 2005, EMAP Radio's revenues were up 2% and profit increased from £9m to £11m on a year-on-year like-for-like basis, whilst operating margins improved from 19% to 22%. EMAP said that it had achieved “continued outperformance in a very competitive market” in which sector revenues were estimated to have fallen by 7%. EMAP said that the integration of former Scottish Radio Holdings stations was “progressing well” and was on track to deliver the £5m of cost savings identified at the time of acquisition. Tom Moloney, group chief executive, said: “Radio continues to outperform the market, demonstrating the strength of our position in the commercial radio sector." The results made no mention of the long-term decline of audiences for EMAP's analogue stations, and only referred to listening hours being “broadly level year-on-year” for the group as a whole. The value of local advertising fell by 9% year-on-year, and London station 'Kiss FM’s decline in listening share from 4.5% a year ago to 3.5% last quarter was said to be “anticipated”. Moloney said: "We feel that, while we don't have the biggest commercial radio business in the UK, we have the strongest, the most coherent and probably the most profitable. More importantly, the business is best positioned for the future." He conceded that the decision to rebrand local stations in the North had not been a complete success. "You have to ask yourself all the time what is it about radio that makes people want to turn it on, and it's not just music,” he said. “The music is important but it's also about getting the tone of voice and local content right.” [First published in 'The Radio Magazine' as 'Emap Outperforms But May Become Bid Target', #710, 16 November 2005] Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk