November 28, 2005


Radio group to sell stations

Cost-cutting and rationalisation in the face of falling advertising revenues mean the end of some radio stations and the birth of others.

Radio Group GCap Media has revealed that it will be combining all its youth music output under the single “Xfm” brand – replacing Beat 106 in Scotland and launching Xfm Manchester as one national network.

The move came after the company, the UK’s largest commercial radio broadcaster, reported a 27 per cent decrease in operating profits in the six months to September.

Revenues, the firm said, were also down 11 per cent.

CGap also confirmed it would be selling nine analogue stations, including some in the north-west of England.

Chief executive Ralph Bernard admitted the results were “disappointing” and did not reflect the full potential of CGap’s assets.

GCap won the Xfm analogue licence in Manchester in June this year.

“If ever there was a radio station made for Manchester, Xfm is it,” said brand managing director Graham Bryce at the time.

“ We did loads of research in Manchester and we were overwhelmed by the level of local support.

“I’m delighted that Ofcom have recognised Manchester as the home of great new music and Xfm as the brand to deliver it.”