TLR Local Radio

RNS Number:5974R
Local Radio Company PLC (The)
04 April 2008



4 April 2008

                          THE LOCAL RADIO COMPANY PLC

The Local Radio Company ("the Company") is today providing an update on trading
ahead of its interim results announcement.

We expect revenues for the six months to March 31st 2008 to increase by 5%
overall and 4% on a like for like basis continuing the positive trend from last
year, albeit in difficult market conditions.

Revenues from national sales through the Company's joint venture First Radio
Sales have been exceptionally strong.  The business has an excellent management
team and we expect them to maintain this strong performance in the second half
of the year.

Despite weakened consumer confidence in the first few months of 2008, reflected
in poor high street sales, our local business has continued to make progress,
with revenues 1% ahead on a like for like basis as an improvement in March
offset weaker trading in January and February.

However, the Company's strong revenue performance has been offset by our
significant investment in in-house web design and sales to support our on-line
strategy, upward pressure on operating expenses and start-up costs for our new
station in Northallerton.

Audience growth has continued with more of our stations than ever before now
holding the first or second commercial slot in their local markets.  We now hold
pre-eminent market positions in 21 out of our 27 markets.  Our total listening
hours have also shown further improvement, growing by 10% over the last 12
months from 6.9 million to 7.7 million hours.

We have continued to make progress in monetising radio audiences through the
on-line extension of our portfolio of strong local radio brands.  This
alternative digital strategy is proving increasingly popular with listeners and
is creating a new competitive marketing platform for our many local advertisers.

Whilst at this stage our on-line revenues are small, we have already seen a
three-fold increase in on-line sales in the second half of the period and we
expect this level of growth to continue for the rest of the year.

We will report more fully on our on-line strategy and progress in our interim
results statement.

Richard Wheatly, Executive Chairman of the Local Radio Company said:

"In this first six months we have successfully continued to drive our revenues
in what has been an uncertain advertising market.  I am encouraged by progress
in the business and particularly by the development of our local on-line
businesses. I expect this progress to continue as we work to grow revenues from
all sources and expand our local franchises beyond the conventional radio
advertising model.  We have a strong balance sheet and continue to monitor
developments in the sector with the objective of improving our portfolio of
stations."


For further enquiries, please contact:

Richard Wheatly, Executive Chairman

Alistair Mackenzie, Finance Director

The Local Radio Company                                          01494 688 205

John Craven/Simon Robinson

Landsbanki Securities                                            020 7426 9000

Andy Mills/James Devas

Aura Financial                                                   020 7321 0000


- ENDS -




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