GCap Media has revealed plans to close two of its radio stations to cut costs.

Owner of London’s Capital Radio, GCap Media, has revealed plans to close two radio stations and scale back investment into digital technology, in order to save £9 million.

Announcing the news on 11 February, the company will close theJazz and Planet Rock, two of its non-core brands, and dispose of Xfm regional analogue licences in Scotland, South Wales and Manchester –focusing instead on Xfm’s heritage as a London brand and with a national broadband footprint. It will also dispose of Digital One, leading to reduced DAB transmission fees.

Fru Hazlitt, Chief Executive of GCap Media, said: “Today we are announcing a radical but realistic set of measures with the aim of delivering significant improvements to profits and operating margins and positioning GCap Media for
long-term sustainable growth.

“GCap Media will become a leaner and more dynamic company focused on maximising the revenue and profit potential of five key brands on FM and broadband, the platforms that we believe consumers want and which offer the greatest growth opportunities.

“Capital 95.8 will have a new flexible inventory policy with up to nine minutes of advertising per hour and we plan to dispose of our interest in Digital One, reflecting our view that DAB is not an economically viable platform for the Company.”
GCap’s shares fell 2.9% on Monday to 184.250p.