Classic FM owner GWR recorded sharply lower profits as a loss in advertising revenue took the shine off record listener numbers.
Swindon-based GWR said its business still remained robust after Classic's weekly audience reached 6.4 million and its clutch of local radio stations achieved a figure of five million listeners.
But pre-tax profits before exceptional items fell in the six months to September 30 to £2.8 million from £9.4 million last time, following a 5.9 per cent drop in like-for-like advertising revenues.
Shares fell 11 per cent to 261p following the update.
Including exceptional items of £4.7 million, GWR recorded a loss of £1.9 million, compared with pre-tax profits of £6.9 million last time.
Turnover rose 6.3 per cent to £62.4 million although this represented a 3.4 per cent decrease on a like-for-like basis.
Shareholders will receive an unchanged interim dividend of 2.3p.
The decline in revenues, which compares with an industry-wide figure of 9.4 per cent, reflects an eight per cent fall in GWR's national revenues during the period.
Local revenues, which comprise around 40 per cent of business, proved more resilient, with a decline of three per cent.
GWR's local radio station portfolio includes Essex FM, Midlands-based Beacon, GWR in Bristol and Reading's 2-TenFM.
Chairman Ralph Bernard said the company would now look to focus its resources behind its core radio businesses.
"It is a difficult market but ours is a robust business strongly supported by excellent assets," he said.
A strategic review due to be completed in January will consider the future of a number of non-core businesses outside the UK. However, GWR said it was confident its investment in digital radio would soon pay off. The company is the majority shareholder of the Digital One radio venture.
Mr Bernard added: "Several developments in digital radio give us encouragement that consumers will soon be buying digital radios in significant quantities."
The group is involved in a joint venture to produce a low cost chip-set which could result in radio receivers being sold for under £100 next year.
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