LONDON (Brand Republic) - Shares in UK radio group Capital Radio fell 24% this morning on the news that its full-year profits could fall short of last year鈥檚 results by as much as 10%.
The group said it expects revenues for the six months to March 2001 to increase by 8% while like-for-like revenues for the year is forecast to grow by just 2%, half the amount it forecast in January.
The company is blaming the 鈥渨idely reported slowdown in the UK advertising market鈥 during its second quarter.
The warning follows a downgrade in the group鈥檚 stock by UBS Warburg on Tuesday, which knocked nearly 10% off its shares.
Capital said it is continuing to make increased investment in digital radio and strategic marketing, as well as continued investment in alternative music station Xfm and interactive operations.
It added in a statement, 鈥淎lthough we remain cautious regarding current trends in the advertising market, we believe the longer term prospects for radio advertising are very positive.鈥