Scottish Radio full-year like-for-like revenues flat

SCOTTISH RADIO HOLDINGS which has significant newspaper and radio interests in Ireland, said yesterday its underlying full-year like-for-like revenues would be flat.

The company said in a statement a 2% fall in radio revenues had been offset by a 2% rise in revenues from its publishing operations. The sale of Score Outdoor, completed on July 25, 2002, removed the group’s only loss-making division: “The group’s remaining divisions have produced a strong revenue performance in challenging market conditions. Operating margins in press will be at a similar level to last year. In radio, operating margins will be lower than last year, reflecting both slightly lower revenues and increased marketing expenditure. Acquisitions completed during the year in both divisions are contributing in line with expectations and the full year effect will be apparent in next year's figures.

“It is encouraging that press revenues grew in the current year and, overall, radio revenues held up well. Recently, radio revenues have been more encouraging, but it remains too early to say whether the stronger performance in the last quarter presages a more sustained improvement. The Group is fortunate to generate the majority of its revenues from local sources which have largely offset the weaker national advertising conditions apparent this year. The Group's audience position and readership franchises are excellent, operating margins remain strong and SRH's long-established policy of maintaining a strong balance sheet leaves it in a position to continue to develop both divisions further. The board continues, therefore, to view prospects with confidence.

“During this financial year we acquired Wave 105 in Southampton and the 76% not previously owned of Today FM, the national station in the Republic of Ireland. In July 2001 we took 100% control of CFM in Carlisle and the above like-for-like comparisons exclude these three recently wholly-owned stations.

“In March 2002 we acquired the Longford Leader (Republic of Ireland) and in September 2002 the Galloway Gazette Group (Scotland). The Score Press division now publishes 43 weekly newspapers, all of which are local.

“Total Score Press revenues excluding the effect of those companies acquired this year or sold last year, are expected to have increased by 2% over last year. Advertising and circulation revenues for the year to 30 September are expected to show increases of 5% and 9% respectively with a drop in other revenues (mainly contract printing) of 8%.”