Newspaper article The Evening Standard (London, England)

Ads Slump Hits Launch of Capital-GWR Merger

Newspaper article The Evening Standard (London, England)

Ads Slump Hits Launch of Capital-GWR Merger

Article excerpt

Byline: NICK GOODWAY

ADVERTISING revenue fell off a cliff last month at Capital Radio and GWR which today completed their merger into GCap Media.

Shares in the new [pounds sterling]500 million company tumbled 211/2p to 313p.

Other radio broadcasters fell with Emap, Chrysalis and Scottish Radio Holdings hardest hit.

"Everyone we talk to in broadcast and print media is telling us it's a very, very weak market out there," said David Mansfield, chief executive of the merged company.

He said Capital's revenue in April was down 21% against a year ago while GWR's was 15% lower, giving a combined 17% decline.

Although an early Easter in March and disruption caused by the general election were partly to blame, the major causes were "weak consumer confidence and low spends from traditional top 10 advertisers".

GCap said it was "taking a cautious view on overall market conditions and expects the principal factors that impacted April to continue in May and June. …

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