Chrysalis outperforms the radio market as revenues fall

LONDON - Chrysalis Group expects to report a like-for-like decline in revenue of 4% in the six months to February 28, but it has said its Heart FM is outperforming the radio market.

In a pre-interim results statement, Chrysalis said it was in line to meet its financial targets for the year and outperform the radio and music publishing sectors.

Advertising revenue for Chysalis Radio increased by 10% in March and April over the same period last year.

Last month's Rajar audience figures showed Chrysalis station Heart 106.2 holding on to the number one spot in London for the second quarter running, as national commercial radio was further squeezed by the BBC in the fourth quarter of 2005.

Heart FM took a market share of 6%, down on the 6.4% it achieved in the previous quarter, with Capital a close second on 5.9%. Chrysalis's speech station LBC 97.3FM dropped from 2.9% to 2.5%.

The group's music publishing arm Chrysalis Music has had a strong first half with expected growth in net publishers share of 6% to 7%, the statement said. This is expected to continue in the second half when major releases are due from artists including Gnarls Barkley and the Yeah Yeah Yeahs.

Richard Huntingford, group chief executive, said: "The outperformance of our radio and music divisions against their respective peers during the year to date, confirms that the benefits of our strategy of focusing on these two strong businesses are coming through as planned.

"Heart 106.2 remains the most-listened-to station in the important London market and we have once again demonstrated the strength of our music catalogue and our distribution business, all of which gives me confidence that the current financial year will be a successful one for the group."

The group, which owns Heart, Galaxy, LBC and The Arrow, is due to announce interim results on May 22.

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