Irish radio boosts UTV

UTV’s Irish radio division — which includes Cork stations 103 and 96FM, Dublin’s Q102 and FM104 and Limerick’s Live 95FM — provided the main impetus to the Belfast- based-broadcasting group’s first half results.

Pre-tax profits at UTV for the first six months of this year, grew by 12% year-on-year to £10.4 million (€13m). Group turnover was up by 8% to £62m and the group set an interim dividend of £3.30.

There was an overall increase in non-television generated operating profit of 32% to £9.9m. Indeed, tv operating profit was down 5% on the same period last year, to £4.7m.

Overall revenue in UTV's radio division — it also has significant radio assets in Britain — rose by 15%, year-on-year, to £36.4m. While its British radio arm saw a 5% like-for-like revenue increase to £25m; the star performer was its Irish radio arm, which saw revenue grow by 47% to £11.4m (€14.3m).

“This is further indication the group’s decision to diversify away from a pure television offering was the right one. This strategy has been key to protecting the group against the current market volatility and leaves us well placed to take advantage of opportunities arising from an upturn.

Good new stories about media companies are rare at the moment,” said UTV Media’s group chief executive John McCann.

“With strong revenue growth, reduced losses at U105 [its Belfast station], and the acquisition of FM104 in Dublin, operating profits from our Irish radio division were up,” Mr McCann added.

In terms of UTV’s total potential performance for this year as a whole, Mr McCann said: “With such considerable uncertainty about global and national economies, it is difficult to predict the rest of the year with any degree of confidence. However, while we are not immune to the chill economic winds, we are confident of our ability to continue to outperform our peer group in the markets we operate in.”