GCap predicts 16% profit increase

LONDON - GCap Media is predicting a 16% year on year revenue increase for July with radio advertising revenue up 14% and online revenues for the quarter up 38% since the same time last year.

The news was published today in the company's first interim management statement and relates to the period 1 April to 25 July this year, the first 16 weeks of the financial year.

In the first quarter of 2007 total revenues for the group were up 2% on the year and it is expecting yet more growth overall in the second quarter.

Bosses have also announced plans to make further cost savings over the next two years in addition to the £5.5m savings announced in May.

The statement said that further cost reductions, "will enable us to target an operating profit margin of between 12% - 14% by March 2009".

It was also announced in May that investment in digital stations Core and Life had ceased but GCap confirmed today the spectrum that carries the stations was up for sale.

In a separate move BT Movio has given notice to terminate its contract for data capacity on Digital One, of which GCap is the majority shareholder. Digital One is now seeking a new partner to take over the capacity from June 2008.

Media Week 26-Jul-07, 12:40