UTV considered Channel 6 bid

UTV MEDIA, which yesterday reported that group revenues rose by 7% year-on-year over the first four months of 2008, is understood to have considered purchasing Irish television station, Channel 6, before deciding against making a bid.

According to media industry sources, the Belfast-based broadcast and new media group’s plc status would have made it difficult to convince shareholders of the idea of buying such a loss-making business.

According to reports, the private equity-owned TV3 is close to buying Channel 6 for about €10 million; although neither party were available for comment yesterday.

Meanwhile, in its interim management statement updating on performance so far this year, UTV said yesterday that its underlying growth since the beginning of 2008 was driven by its radio businesses and that it expected the good performance in that division to be maintained for the remainder of the first half of this year.

The 7% revenue growth between January and April included contributions from recently acquired businesses; online services company Tibus and Dublin radio station, FM104.

Its Irish radio arm — which includes Dublin stations FM104 and Q102, Limerick’s Live 95FM, Cork-based stations 96FM and 103FM and Drogheda station, LMFM — saw growth of 32%.

UTV’s group finance director Paul O’Brien said yesterday that performance was pleasing but “not without challenges”. While radio was upbeat, UTV’s television operations saw a 3% year-on-year drop in revenue for the first four months of the year, a trend which is expected to continue for the first half of the year as a whole.

Meanwhile, UTV is known to be still interested in buying Co Kildare-based radio station KFM and British station, Virgin Radio — the sales processes of each are ongoing.

Virgin’s Scottish owners, SMG, put out a trading statement yesterday saying as much. It has been reported that SMG’s preferred bidder for Virgin Radio is Absolute Radio rather than UTV, but this has yet to be confirmed.