RG Capital Radio’s annual general meeting brought good news for shareholders and the radio industry in general, as Chairman Tim Hughes announced a 10% increase in sales.

The announcement signals an easing of the tight revenue period that the industry has suffered over the past few years. RG Capital reported a net profit rise of 17.5% to $9.629 million for the 2002/3 financial year on a revenue increase of 4.7% (to $60.19 million).

Hughes is forecasting similar ongoing growth in the early part of this financial year after an outstanding performance for September, where national sales were up 13% and local sales were up 9%.

Hughes said: Following a record year in sales and profit in 2003, I am pleased to announce this year has also started strongly.”

The company’s best performing markets were the Gold Coast, NSW Central Coast, the Queensland Sunshine Coast, Newcastle and Hobart.

Full year growth was in both national and local sales, with recent rains in some markets helping achieve “a strong rebound” in regional areas.

At the AGM Tim Hughes signalled that the company planned to bid for new licences in Brisbane, Sydney and Melbourne, as well as their Adelaide bid, but, he said, “we don’t have to go in and pay crazy prices.”

At the AGM Managing director Rhys Holleran commented in positive terms about the group’s most recent competitor, saying:

“Hot Tomato… is pursuing a high rate-yield strategy… They’re marketing themselves in an orderly fashion… [so] good rate integrity in the market is good for everybody… Nobody wants to be in some sort of discounting war.”

RG Capital netted a record $9.63 million in 2002-03, an 18% rise on the previous year, and paid a dividend of 13c per share.

The company operates 30 regional radio stations in Australia’s eastern states. RG Capital shares rose 15 cents on the news to $2.80.