Commercial radio group Capital stretched its run of revenue growth to nine months today as confidence continued to return to the advertising sector.

London-based Capital, which has 20 stations across the country including in Birmingham, Cardiff, Oxford and Kent, reported a 2% improvement in revenues for the first three months of 2004.

That builds on a year-on-year increase of 5% in the run-up to Christmas as Capital achieved revenue growth of 3% in the half-year to March 31.

The group said it had benefited from particularly strong performances from xfm, the Century FM network and the recently acquired Choice FM.

Buoyed by nine months of year-on-year growth, Capital said forward bookings indicated that this month would show a "modest" revenues improvement.

Capital is also awaiting the launch of a new breakfast show at its flagship station 95.8 FM, with television personality Johnny Vaughan due to take over from long-time presenter Chris Tarrant on April 19.

However, the change is unlikely to have an impact on results for the year to September 30 as the first set of audience figures are not due until August.

Analysts are currently expecting full-year figures from the group to show a modest improvement in underlying profits to £23.4 million, from £22.7 million reported a year earlier.

At the bottom-line last year, Capital saw pre-tax profits fall 10% to £13.3 million as the group faced up to gruelling trading conditions.

Results for the six months to March 31 are due to be released on May 20.

Thursday April 01, 2004