£22m Chrysalis web wipe-out

MEDIA group Chrysalis said its losses on a disastrous foray into e-commerce totalled £22.4m. New-media operating losses and write-downs sent the group to a pre-tax loss of £16.8m in the year to August against a profit of £900,000 last time.

'We've decided to take it on the chin and write down all the internet businesses to zero,' said chief executive Richard Huntingford.

Most of the e-businesses have been shut or sold but Chrysalis still has high hopes for its sports website, Rivals, and is in talks with several potential strategic partners. Rivals has £4m of cash, enough to last it at least until next August.

Backers paid an adjusted 352p a share at the height of the dotcom boom in January 2000 when Chrysalis tapped them for £26m. The shares were up 5p to 22 2 1/2p.

Advertising revenues in the key radio station division rose 18% in the year and were up 40% at the flagship station Heart 106.2 FM in London. Chrysalis has not been immune from the current advertising slowdown but Huntingford still expects advertising growth of 5% for the full year.