NEWS: TRANS WORLD COMMUNICATIONS PLC REPORTS PRE-TAX PROFIT FOLLOWING SUCCESSIVE YEARS OF LOSSES by GRANT GODDARD

www.grantgoddard.co.uk September 1992

Trans World Communications plc, the eight-station radio group, returned a 395,000 pre-tax profit for the first half of 1992, compared to a loss of more than 1m for the same period last year. Chairman John Whitney credited the turnaround of the group's fortunes to a combination of increased audiences, improved advertising revenues and cost control procedures. The group's turnover grew by 9% to 5.7m in the six-month period and its stations' total listening hours increased by 12%, bucking the national trend of stagnant commercial radio audiences. Latest JICRAR results (Apr-Jun 1992) show dramatically improved listenership to the group's Leeds operation, with a 54% increase in hours listened to Top 40 station 'Aire FM' over the previous six months, and an 18% increase for its gold counterpart 'Magic 828'. Trans World's recent return to profit follows pre-tax losses of 1.8m in 1990 and 1.2m in 1991, when the group was burdened by annual interest charges exceeding 1m. A rights issue last year eliminated the plc's substantial debt, replacing it with a 1.2m cash balance. Whitney says that no decision on a share dividend will be made until the full year's accounts have been audited, but promises that "the prospects are encouraging". The group also announced three new Board appointments; Neil Jones, Managing Director of its Manchester station 'Piccadilly Radio'; Group Secretary Tony Dewhurst; and Finance Director Philip Seddon. Michael Connolly, Group Finance Director, who has managed the company's day-to-day affairs for more than a year, is formally appointed Chief Executive.

[First published in 'Broadcast' magazine as 'Trans World Starts Climb Into Profit', 11 September 1992]

Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk

News: Trans World Communications plc Reports Pre-Tax Profit Following Successive Years Of Losses 1992 Grant Goddard

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