LONDON (Brand Republic) 鈥 Commercial radio group GWR recorded a 24% fall in half-year pre-tax profits to £6.9m, following a period of licence acquisitions and investment in new technology.
The group -鈥 which owns national radio station Classic FM as well as a number of regional networks -鈥 said net income for the six months ended September 30 fell £4.12m from £6.39m. Turnover rose from £47.5m to £58.7m compared with the same period during 1999.
The company bought DMG Radio group from the Daily Mail & General Trust in June for £146m, adding to its portfolio of stations in the UK, Hungary and Australia and making it the second-largest in radio group in the UK. Last week, it announced its £12.1m acquisition of the Marcher Radio group and its five licences in Cheshire and North Wales.
GWR is investing in digital radio and is expanding on the internet in a bid to attract a wider audience. Chairman Henry Meakin said in a statement that digital radio and the internet are where the 鈥渂ig rewards will be felt in years to come鈥. The group owns a majority stake in digital radio operator Digital One.
The company said its investments have been the highest of any reporting period.
GWR鈥檚 stock fell 17.5p to 790p after the results were released. Shares in the company have gained 65% over the last year.