But bosses remained confident going into the new financial year, just weeks after refinancing the company and bringing in £3m of new investment.
TLRC owns 28 local stations and half of the advertising sales house First Radio Sales, whose like-for-like trading revenues are up 14%.
Richard Wheatly, chief executive of TLRC, said: "Our results show record audience figures, the highest we've ever had as a group, when the industry has been flat or down."
"We're upbeat about trading when everyone else is the opposite. We've made a loss because the market is down, but we've managed to grow the business by 2%."
Wheatly said Win FM and The Rocket were sold recently because they "did not respond to management action plans".
The company has also recently launched Durham FM and Brunel FM and disposed of its Enterprise Division, which lost more than £250,000 during the year.
Local Radio Company posts losses of £2m
The Local Radio Company has reported operating losses of more than £2million in the year to 30 September.
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