UTV profits fall to £18.1m
On a group-wide basis, the Belfast-headquartered broadcasting giant saw pre-tax profits fall from £20.7m to £18.1m, last year, with group revenue falling by 6% to £112.1m. Earnings per share fell from 14.26p to 12.32p. The full year dividend for shareholders is set to be 2p per share; down from the 5.30p paid out in 2008.
Two positive figures were the £6m in annualised cost savings generated and an 18% reduction in the group’s net debt – from £107.6m to £88.5m.
UTV’s radio operations – covering Ireland and Britain – represent 61% of group turnover and 70% of group profit.
In Ireland, the group owns seven radio stations including FM104 and Q102 in Dublin and Cork stations, 96FM and C103.
Irish radio revenues were boosted by foreign exchange movements and the first full-year contribution from FM104.
While operating profit from the group’s television division – mainly Ulster Television – fell from £7.7m to £5.3m last year, management said that its British-based radio and television revenue has turned positive in the first few months of this year.
UTV group chief executive, John McCann said that despite the unprecedented economic downturn, the latest set of results illustrated “the robustness of UTV Media.”
“I’m particularly pleased that, throughout the difficulties, we’ve been able to significantly improve our capital position.
“The reduction in net debt and cost savings ahead of target mean that the company is in a strong position to tackle the new financial year,” he said.
Mr McCann added that since the turn of the year, the group has seen “some improvements” in the advertising market.
UTV did warn, however, that continuing advertising weakness in Ireland is affecting the group’s overall ad revenues, but management still expects the first four months of 2010 to show a group-wide 2%, year-on-year, rise in advertising revenue.
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