Media group Chrysalis has suggested it may have turned the corner after a tough year saw it slump nearly £30 million into the red.
The London-based firm yesterday flagged a four per cent increase in like-for-like revenues during September and October at its radio division.
Chrysalis is the fourth largest radio group in the UK, running the Galaxy and Heart brands, including Birmingham-based Galaxay
102.2 and 100.7 Heart fm, as well as LBC in London.
The company said the acquisition of Nottingham based Century 106 - rebranded Heart 106 - from GCap in May 2005 had also strengthened the Heart network and given Chrysalis "strength across the whole of the important Midlands region".
A new operating structure was put in place at Galaxy which, as with Heart, would enable it "to take advantage of numerous opportunities for the Galaxy brand beyond traditional analogue radio".
Recent figures have shown that presenter Jamie Theakston added 163,000 listeners to his London-based Heart
106.2 show over the summer, while a number one album from singer-songwriter David Gray has helped Chrysalis Music make a strong start to the year.
Chief executive Richard Huntingford said that demonstrated the benefits of a " renewed focus" that had seen Chrysalis dispose of its lossmaking books business and cull the number of artists on the roster of its Echo record label.
He described 2005 as "a difficult year", with the radio industry suffering from firms spending less on advertising their products over the airwaves.
Losses of £29.9 million for the 12 months to August 31 largely reflected the writedown of assets in Chrysalis Books, which was sold to its managers for £12.5 million earlier this month.
Chrysalis said annual profits from continuing businesses totalled £2.7 million compared with a surplus of £9.5 million a year earlier.
Despite this performance, Mr Huntingford cited the return of Chrysalis Radio to revenues growth over the past two months among the factors that were giving him confidence.
The improved performance from Heart 106.2 between July and September was founded on work that took place last autumn, including some new logos and a print and television marketing campaign.
Chrysalis has also been strengthening the position of Galaxy by using texts, ringtones and the internet to target more people in the 15-34 age bracket.