News of talks at the weekend were being seen as the first signs of consolidation in the radio industry, following the release of the government's draft communications bill recently. GWR owns Classic FM, Planet Rock and 31 local licences. The company is 26% owned by the Daily Mail & General Trust.
Pre-tax profit, before goodwill and exceptional items, fell to £7.7m from £20.7m last time. Revenues were down 5.4%, falling to £113.1m from £119.5m last time. The proposed final dividend per share is unchanged at 3.5p.
Comparison of the group's UK advertising revenues on a like-for-like basis with those of the radio industry showed its revenues were down by 7.2%, compared with the industry's decline of 7.7%.
Despite the tough advertising climate, GWR said its UK stations have outperformed the industry as a whole and it expects that there would be an increase in first-quarter revenues. It will also benefit from its disposals programme, which will result in significant reduction in debt.
During the year, GWR has continued its focus on the UK market and its withdrawal from overseas investments, including Australia. It has also completed its reorganisation of London News Radio.
Ralph Bernard, the GWR executive chairman, commented: "The communications bill marks a watershed for the UK media industry. GWR is committed to a focused strategy on the UK so that we may gain the maximum value from this period of unprecedented opportunity. GWR, with its wide network of national and local licences and its unique position in DAB, the future of radio, is central to any change."
GWR shares were up this morning, rising 3.7% to 266.5p.
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