SMG: Virgin Radio IPO "on track"

SMG said today that its plans to float Virgin Radio on the stock exchange are "on track" for the Autumn.

In a business update issue to the London Stock Exchange this morning, the media group said:

"The IPO of Virgin Radio is on track for the autumn. Virgin Radio is one of the UK's three national radio licences and is the only national station with a rock and pop format. It broadcasts in analogue format on AM and digitally on DAB, satellite television, digital terrestrial television and online in addition to holding a London FM licence. Its valued brand and multi-platform stance puts the business in a unique position to capitalise on digital listening where it already out-competes the market average by a considerable margin (18% versus 12%). Virgin Radio has 2.5 million listeners across the UK, principally in the 20-44 year old age bracket - a particularly attractive demographic group to advertisers.

"It has consistently outperformed the UK radio market (+9% year on year revenue growth to June versus a declining market) and displays particular strengths in sponsorship and promotions, which represent 25% of revenue.

"Virgin Radio's IPO will create a strong and focused radio business, with a great brand, that will provide an attractive, pure-play investment opportunity with a strong platform for future growth. A strong Board is currently being formed and announcements will be made shortly."