The Local Radio Company has revealed its gross profits fell by 2% in the 12 months to September 30, which chairman Anthony Gumbiner described in its report to the city this morning (March 6) as “disappointing.”
Profits have fallen at the group, which owns 20 local radio stations, despite the disposal of six stations in 2008. It has since entered into talks to sell its flagship national station Jazz Fm to a consortium led by the station’s executive chairman Richard Wheatley (MW Jan 7).
Gumbiner said in this morning’s statement that commercial radio is “suffering significant commercial and structural challenges”, adding trade body Radiocentre “suggest the industry as a whole is now loss making.”
As a result he says the group is “carrying a radical restructuring the business cost base” in addition to selling Jazz Fm.
However, he added LRC believed owning local radio stations and local media assets is a sound “long-term strategy”, and would continue to invest and acquire assets in areas where services can be operated at a “lower cost.”