In a sign of crisis for digital radio, UK commercial radio leader GCap will, as expected, sell its 67 percent stake in the DigitalOne DAB multiplex as part of cost-cutting measures designed to fend off an earlier bid from Global Radio. Recently-departed CEO Ralph Bernard had already protested digital radio costs were too high because Ofcom declined the opportunity to name an analogue radio cut-off date as it did for TV. This morning, nearly two months in to the job, Fru Hazlitt has told the market her “radical but realistic” strategy will cut £8.8 million costs and create £12.3 million profit.

Hazlitt’s statement (full version): “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.

“We believe that broadband is the ideal complementary platform to analogue radio given the interactivity that they both provide, creating social networks and communities on-air and online.” She said online operations would break even this financial year and plans to build “communities of interest” around stations. GCap will roll out an enhanced version of Nokia’s (NYSE: NOK) Visual Radio later this year and Hazlitt talked up a “great working relationship with Apple” that had led to live streamed radio to the iPod touch.

Also…

—GCap will close “non-core” DAB stations theJazz and Planet Rock by March 28.
—It will dispose of its regional analogue licences for Xfm in Scotland, Mancester and south Wales, which only launched in November after a long-running regional rollout strategy, also by March 28 to concentrate “on Xfm’s heritage as a London brand and with a national broadband footprint”.
—Increasing ad inventory for Capital 95.8 in London.
—Spending an extra £800,000 on technology “to enhance our revenue performance”.

Radio masts operator Arqiva owns the remaining stake in the Digital One multiplex (a network of DAB stations), and a second multiple run by 4Radio is due to go on-line in a couple of years but is also facing cost delays. GCap was suffering from £5.5 million less income because BT (NYSE: BT) Movio and Oneword closed services that used its network. The disposal means it can save on transmission costs - it said DigitalOne and regional multiplexes cost £18 million a year.