The comments, made by its chairman Henry Meakin, came as the group reported first-quarter revenues up by approximately 8% as a result of its acquisition of DMG Radio and the Marcher Group, but the like-for-like result showed a year-on year-decrease of 11%.
In a statement, Meakin said, "In May, when announcing our results for the year ended March 2001, I said that the new financial year had started with difficult advertising market conditions. This remains the case throughout most of the advertising related industries."
He added, "Looking beyond the second quarter, we await consistent evidence that the current market conditions will improve. However, for the purpose of our internal forecasts, we are not assuming any significant recovery in the advertising market until the first quarter of 2002."
The company's local advertising revenues, which represent approximately 40% of total UK revenues, fell 4% as forecast. National advertising revenue, however, has been harder hit, with a drop of 15% reported.
Meakin said he was encouraged that GWR's revenues were showing a better performance when compared with the first quarter. In particular, he said local stations are expecting a modest year-on-year growth in total revenues in the second quarter.
"We are encouraged by evidence which suggests that radio in the UK is performing better than most other media, in particular television, and continues to grow its share of total display advertising revenues. The management team has proven experience in managing the business through such a downturn and in maximising the group's opportunities as the advertising market recovers," Meakin said.
Meakin is due to step down shortly to make way for his replacement Ralph Bernard, the group's current CEO, who will become executive chairman.
Meakin was one of the founders of Wiltshire Radio -- which grew to become GWR -- 20 years ago. He became chairman in 1987 and led the group's flotation in 1988. Between 1991 and 1993, he was chairman of GWR's flagship station Classic FM.