Capital flows profit increase into new internet music site

Capital Radio last week reported a small increase in profits and said it was diverting some of those earnings into a music website.

Capital Radio last week reported a small increase in profits and

said it was diverting some of those earnings into a music website.



Sales for the year ending 30 September were up from pounds 120.6 million

to pounds 125.4 million, while profits climbed pounds 37.1 million.



The profit figure excludes additional charges of pounds 21.3

million.



Capital’s advertising revenue growth fell slightly short of the industry

average, but David Mansfield, Capital’s chief executive, said he

expected the group to meet the industry target next year.



The station announced that it was investing 8.4 million back into the

company, the breakdown of which includes a pounds 5.5 million commitment

to the new internet music site, pounds 1.2 million on new digital

investments and pounds 1.7 million on Xfm.



An industry spokesman said:’Capital still has the space to grow and the

money to make acquisitions if the right stations come along.’