Absolute Radio is no longer for sale as Indian owner completes review
Absolute Radio is no longer for sale - following a review by its India-based owner Bennett, Coleman & Co.
Media Week reports that the owner has announced it has completed its review of the radio business and confirmed its long-term backing.
In April, Bennett, Coleman & Co, which owns the Times of India newspaper, appointed investment bank Jefferies to conduct a review of Absolute…and a number of radio groups have been in talks to buy the station.
However, following reported valuations of the station at less than half what it originally paid, Ravi Dhariwal, chairman of Absolute Radio and chief executive of Bennett, Coleman & Co, has restated its commitment to Absolute.
Media Week quotes Dhariwal as saying:"Absolute Radio has demonstrated great digital innovation, thought leadership and has significantly grown its business in the last 12 months.
"We have great confidence in the British digital economy, the One Golden Square team and Absolute Radio’s senior management as it heads towards breakeven in 2012 and look forward to continuing to invest in the business for many years to come."
The business was bought by the Indian giant’s TIML Radio subsidiary for £53.2 million in June 2008 from Scottish broadcaster STV.
Absolute Radio is reported as saying today the business will record a revenue increase of 32% in the third quarter of 2011 - 17% ahead of the market, and recorded its "best performance in 10 years" in the Rajar audience figures for Q2.
TIML rebranded Virgin Radio as Absolute Radio in September, 2008. The business recorded pre-tax losses of £4.3 million in 2009.
Absolute says it is now working towards breaking even in 2012 - six to eight months behind schedule.
Donnach O’Driscoll, chief executive of Absolute Radio, said: "As we head towards our third birthday One Golden Square continues to lead the radio industry. We have exciting plans afoot, including new launches - this business is just getting started."
Absolute Radio was Bennett, Coleman & Co's first and only investment outside India.
The original review had involved conversations with a number of parties about a possible sale of the business but earlier this month Campaign revealed talks had stalled after the final two bidders estimated the business was worth less than £20m.
The last two external parties believed to be talking about a potential sale include Virgin Radio International, part of the Virgin Group, and UTV Media, the owner of TalkSport and holder of the channel three licences in Northern Ireland.
Absolute Radio is currently looking for a commercial director as Chris Goldson is working out his notice before leaving to join ITV in the new role of strategic engagement director.