Capital and Classic FM hit by ad slide

RADIO shares were on the slide after two of the country's largest commercial stations, Capital and Classic FM, reported falling advertising revenues with few signs of an abatement in the industry recession.

Reporting a 3% forecast fall in revenues for the six months to the end of September, Capital Radio's chief executive David Mansfield said: 'I would love to see a recovery but it's just too early to say that we are seeing a trend.'

Revenue falls at Classic FM - exposed to the dire national advertising market - were more stark, with sales tumbling by 12% over the past six months in what it called a 'volatile' market.

A spokesman for the station said it had suffered against a particularly strong comparative period last year when Classic did well out of the Queen's Jubilee celebrations and the football World Cup.

However, there was good news elsewhere at Classic's parent GWR, which reported like-for-like revenue growth of 10% over the past six months at its local radio stations. Local radio accounts for two-thirds of GWR's business and the company said it had benefited from an internal operational shake up.

GWR shares, off from a 15 month high, fell 2 1/2p to 227 1/2p, while Capital Radio's plunged 27 1/2p to 592 1/2p.

Maiden, the outdoor poster advertising group, beat sales forecasts with a 6% growth in revenues for the first half. However, underlying interim pre-tax profits slid by 14% to £1.2m.