The parent company for radio stations Xfm, Choice FM and Capital Gold reported £12.6m profit before tax in its statutory results, a decrease from £13.3m in 2003. Basic earnings per share were 7.1p, down from 7.7p.
However, Capital's underlying results - excluding good will amortisation and other exceptional items - were up.
Revenue rose 4% to £119.9m, while profit before tax also rose 4% to £23.7m.
Capital is to pay a dividend of 18.5p per share.
Capital chief executive David Mansfield said: "In 2004, we delivered the group's best year-on-year growth performance for four years and retained commercial brand leadership in the important London market.
"We continue to strengthen our brands and we will be stepping up our investment in Xfm and Choice FM during 2005. Despite a tough advertising quarter, we remain confident in the prospects for radio. We believe our proposed merger will bring benefits to listeners, advertisers and shareholders and leave us well-positioned to compete more effectively against the BBC."
The Office of Fair Trading and statutory regulator Ofcom are currently examining the proposed merger between GWR and Capital and are expected to announce their decision by the end of the year.