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Global Radio posts £32.7m pre-tax loss

By
Johnny Vaughan

© PA Images / John Phillips

Global Radio, the owner of stations such as Capital, Heart and Classic FM, has posted a pre-tax loss of £32.7m in the year to March 31.

Despite its losses, the UK's largest commercial radio group is thought to have paid its founder & executive president Ashley Tabor £3.3m, up from £2.5m the previous year.

Global also paid its highest earning director a £1.4m bonus, according to documents to be filed at Companies House this week.

Global Radio was able to limit the decline in its commercial revenue to 1.8% year-on-year, an impressive achievement considering the massive 85% cut in spending by the Central Office of Information (COI).

Advertisements from the COI, such as public health campaigns, accounted for 8% of Global's commercial income in the previous year.

The Daily Telegraph reports that the company's increased losses are in part due to a £56.1m interest payment due to its shareholders, which will not actually be drawn until a later date, but must be reflected on its books.

Global's portfolio of stations grew its reach by 6% during the 12-month period, which covered the launch of Capital FM as a national network.

Earnings before interest, tax, depreciation and amortisation increased by 9.3% year-on-year to £50.3m, and operating profits grew 6.6% to £21.2m. The company reduced its bank debt from £104m to £92m.

Global declined to comment on the report.

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