4th Jul 2006 10:08
SMG PLC04 July 2006 SMG Response to Proposed National Radio Licence Terms SMG plc ("SMG") welcomes OFCOM's announcement today of proposed new, reducedlicence terms for Virgin Radio. The proposed terms equate to a fee of £100,000 per annum in payment for Virgin Radio's national AM licence. This represents a reduction of approximately £2m per annum. Virgin Radio will continue to pay no licence fee for its local London FM licence, in keeping with all local radio operatorsin the UK. SMG has until 4 August 2006 to formally accept these terms which, as proposed,will apply to a four year licence extension commencing in May 2008. Thecompany anticipates entering into discussions with OFCOM regarding an earlierdate for adoption of these terms. However, it is unlikely that this positionwill be clarified until later this year. Although advertising markets remain challenging, the Group continues tooutperform in its relevant markets and, with over 50% of 2006 revenues expectedto be generated from sources other than television spot advertising, SMGcontinues to perform in line with the Board's expectations for 2006. Ends 4 July, 2006 Further enquiries: Callum Spreng Corporate Affairs DirectorSMG plc Tel: 0141 300 3640Mob: 07803 970103 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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