Wireless Group profits punctured by ad slowdown, News Corp takeover nears

TalkSport owner Wireless Group, which is awaiting regulatory clearance for its acquisition by Rupert Murdoch's News Corp, saw an advertising slowdown in recent months hit first-half profits.

The ad slowdown in the second quarter in both the UK and Ireland weighed on local radio performance and start-up losses from its three digital stations dialled operating profits down 21% to £6.1m in the six months ended 30 June, although revenues were up 3% to £38.2m.

Group net debt was substantially lower at £1.6m compared to £46.9m a year ago, thanks to completion of the sale of the television business to ITV for £100m in February, of which £55m was returned to shareholders.

TalkSport enjoyed a strong performance thanks to the European Football Championships in France but saw softer advertising trends in the weeks before the EU referendum.

"Whilst it is still unclear what impact the uncertainty created by Brexit might have on advertising revenues in the all-important Q4, including in Ireland, the group currently anticipates a full year outturn broadly in line with expectations," said chairman Richard Huntingford.

He added that "good progress" was being made in respect of the regulatory clearances required in connection with the News Corp offer, while 92% of shareholder approval had been received so far.

Following the offer, the group has agreed not to declare an interim dividend.