Virgin Radio owner optimistic after profits hike

Virgin Radio owner SMG posted a 46% hike in profits today but warned that continued weakness in the volatile advertising market could hit revenues.

The company, which also runs the Grampian and Scottish TV ITV franchises, said underlying pre-tax profits in 2005 were up from £13.7m (€19.9m) to £20m (€29m).

SMG was boosted by lower regulatory costs but warned that advertising revenues were down in the first three months of 2006.

Chairman Chris Masters said: “This performance is, however, in line with our projections and we continue to outperform in our markets.

“We anticipate a much stronger second quarter, aided by Easter and the football World Cup, and we expect to benefit from improving confidence among advertisers.”