Chrysalis Surges To Profit Following Strong Market Out-Performance
A strong out-performance of the market has led Chrysalis Radio to move back in to profit in the year to 31 August 2002. Results released this morning show that the group achieved a pre-tax profit of £5.8 million, up from a pre-tax loss of £16.8 million last year and well ahead of internal budgets.
Chrysalis’ core radio division saw operating profits surge by 41% to £9.4 million at a time when most other UK radio companies are struggling with declining revenues and profits. Last week, GWR Group reported losses of £12 million along with a gloomy outlook (see GWR Losses Deepen To £12m As Tough Market Conditions Bite). Capital Radio and EMAP have also been hit hard by the tough conditions.
In contrast to the weak advertising revenues at the other operators, Chrysalis saw radio revenue rise by 11.7% during the course of the year. Airtime revenue was up 9.4% against a market decline of around 2.0%. In current trading, Chrysalis’ first quarter has shown revenue up by 17%.
Commenting on the results, chief executive Richard Huntingford, said: “Given the tough market conditions and the relative performance of our competitors, we are delighted with these results which reflect our increased focus, as well as the strong growth potential of our businesses and the excellent management throughout the Group.”
Shares in Chrysalis had jumped by 14p to 221.5p by mid-morning today.
