UTV pleased with static performance

UTV Media chief executive John McCann yesterday said he was pleased with the Belfast-based broadcasting group’s static performance for last year, given the downturn in the advertising market and wider economy.

UTV yesterday reported pre-tax profits of £20.3 million (€22m) for 2008, down marginally from £20.8m in the previous year.

Group operating profit was unchanged at £28.1m, but group turnover was up by 6% on 2007’s level, reaching £120.3m.

A final dividend of 2p was declared, resulting in a full-year dividend for shareholders of 5.30p — down from the previous year’s total of 13.50p.

On a divisional basis, television operating profits fell by 24% to £7.7m, while the new media division saw operating profits boosted by 44% to £2m. The jewel in the group’s results came on the radio side. Overall radio operating profit rose by 12% to £18.5m. Most of that good performance came from UTV’s Irish radio portfolio — which includes stations like Q102 and FM104 in Dublin; C103 and 96FM in Cork; LMFM in Drogheda and Limerick’s Live 95FM — where revenue rose by 50% to £24.9m. However, like-for-like revenue in that division (when only measuring stations owned in the previous year) only rose by 1%. FM104 was only acquired in April last year. Overall, operating profits in the Irish radio division rose by 54% to £8m.

Mr McCann said he remained pleased with the group’s future prospects: “These are clearly unprecedented times and the impact on the Irish and British economies is well documented. The advertising sector is feeling the full force of the downturn and clearly that is an issue we are actively addressing. We moved early to raise capital and reduce debt through the rights issue and have aggressively cut costs throughout the business.”

The group is anticipating cost savings of around £5m in the current year. Mr McCann said that UTV had once again outperformed the broadcasting sector and forecast that the business has the ability “to maintain that outperformance”.

“We are not complacent about the situation, but as a management team we are confident of the operational and financial strength of UTV Media. Given the wider context of the economy and advertising markets, I am pleased with the results and our prospects for the future,” he added.