GCap Media is ploughing £5.6m into developing its radio brands after reporting a 9% drop in annual revenues. Pre-tax profits at the Capital Radio owner fell from £22.2m to £14.4m in the 12 months to March 27, while revenues were down from £220.2m to £200.1m.
Capital 95.8 and the One Network will receive a £2.6m investment in marketing and programming, while £2.1m will be spent on developing its brands online. Almost £1m has been earmarked for new station launches.
GCap chief executive Ralph Bernard remained upbeat despite the disappointing results. “The market remains difficult to predict but we have seen an improving trend in advertising revenue performance and we outperformed the market in the last quarter of the financial year,” he says.
The radio group wants to extend its most successful brands across new platforms and a number of stations, including Classic FM and Planet Rock, will be developed as “multiplatform” projects.
The results follow the resignation of commercial director Duncan George yesterday (Tuesday). He leaves the company on June 8 after almost two years.