Revenues at GCap have decreased 6% year-on-year in the quarter to June 30, 2006, it was confirmed this morning.

That figure dropped to 3% when numbers from the group's flagship Capital Radio station were excluded; GCap has reduced the amount of ad time on the station in a bid to boost audience figures.

In a trading statement released to the London Stock Exchange before the opening of trade, GCap said:

"As anticipated, the Capital Radio inventory policy has affected revenues in the quarter to 30th June 2006. However, the Board remains confident that management are taking the right steps to improve audience performance with improved presentation, music and general content across the station; with the arrival in August of a new Programme Director and the roll-out of a marketing plan.

"While we have addressed internal factors affecting revenue performance, trading in the quarter is primarily affected by a worsening advertising market. These difficult conditions look set to continue into July and August. July, which is forecast to be down 14% (down 8% excluding Capital Radio), is we believe, like June, an exceptional decrease primarily due to lower advertising spend around the World Cup.

"Recent trading has been weaker than we expected. Visibility remains limited and the GCap Media Board takes a cautious view on market conditions in the near term. However, against the backdrop of a difficult advertising market we remain committed to our strategy which we believe will deliver long term value for the business."