December 02, 2005 Results & Capital Radio changesOrganisation: GCap
Analysis and commentary by Echo Research. GCap's strategy to slash advertising and play more music to tempt back listeners to the ailing Capital FM may be viewed historically as doing a 'Ratner'. Acknowledging an "extremely disappointing set of results" (Daily Telegraph, 25/11) as well as falling audience figures and a halved interim dividend, GCap CEO Ralph Bernard attempted to put a gloss on his " high risk" (The Times, 25/11) strategy, pointing out that similar action had improved audiences at Classic FM, and that the £7m hit to 06/07 revenue should be regarded as long-term investment. A few of the next day's headlines were hopeful : "Capital Radio halves ad breaks to woo listeners" (Guardian, 24/11), but most highlighted the share rout that accompanied GCap's announcement: " Radio group's advertising revamp wipes £100m off stock value" (The Herald, 25/11 ), "GCap Media share dive as profits slump" (Media Guardian, 24/11). " Sell" advised The Times (25/11). With analysts dubbing GCap's strategy " a very aggressive initiative, with significant execution risk" (Independent, 25/11), the talk by the weekend was of a takeover bid: " Bidders pick up GCap signals" (Independent on Sunday, 27/11), " Bidders circle after GCap's 'commercial suicide'" (The Observer, 27/11). Ratner demonstrated that self-flagellation as a PR and business tactic can backfire. Only time will tell for GCap. |
CSR Study : Crunch could reduce corporate social responsibility
In a poll by Echo Research , 36 per cent of senior professionals said they believed the number of corporate social responsibility programmes would fall ...
Novartis Study
Omnibus Survey, Echo Research, April-May 2008. [2] Ezzati et al. Selected major risk factors and global regional burden of disease. The Lancet. ...
Jolly Good Fellows with a Purpose
by David Michaelson, Echo Research.
