from CMU:

SCOTTISH MEDIA GROUP CAUTIOUS
The Scottish Media Group, owners of struggling Virgin Radio, have seen
profits slump by 28%, and bosses aren't predicting a quick turnround blaming
the continuing advertising recession, which is likely to heighten once we go
to war.

Although Virgin Radio has struggled to win listeners and advertisers since
the high profile departure of Chris Evans and the unsuccessful launch of the
Steve Penk breakfast show, the Group's other broadcasting operations,
including ITV franchise Grampian TV, also saw a slump in advertising
revenues.

"The successful sale of our publishing business will reduce debt and sharpen
our focus on the national advertising market and we are strongly placed to
capitalise on the opportunities that the Communications Act will present. We
have well-branded, profitable assets and are well positioned to benefit from
the advertising upturn when it comes. But there is an Iraq situation and
there is a general economic situation. The ad market has become very short
term again and we continue to be cautious."

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Well what might have affected the station (Virgin) besides the departure of Evans (which was badlly handled), is the fact that Virgin does not offer anything too different from other UK stations. They used to be a rock station but are now a pop station, losing listeners in the process to XFM and to satillite-based radio like TotalRock.

Alas, UK radio is pretty rubbish anyway. There is no shock that the take-up on satillite and internet radio was swift in Britain. I am sure that once Satillite car radio becomes inexpensive enough, it will be very popular. It is no wonder that CD sales are doing better in the UK than anywhere else.