UTV Media profits boosted by World Cup

UTV Media, the North’s biggest broadcaster, said first-half profit rose on increased revenue and lower costs.

Net income climbed 70%, to £7.07 million (€8.64m) from £4.17m a year earlier.

Revenue rose 8.8%, to £59.2m, while finance costs dropped to £2.7m from £3.07m.

Chief executive officer John McCann said the first six months of 2010 saw a better trading performance due to the improving economic environment and the stimulus of the World Cup.

Chairman John B McGuckian said against the background of an improved trading performance, the board has re-instated an interim dividend, declared at 1p.

He said the GB radio division performed strongly in the first half, with turnover up by 22%, to £25.1m, compared with £20.6m in 2009. However, he added: “The performance of our Irish radio division continued to be impacted by the difficult economic environment but the significant decline in advertising revenue experienced in 2009 moderated in the first six months of 2010.” On a like for like basis, revenue in the first half of this year was down by 4%, with the month of June recording an increase of 6%.

This reduction was mitigated by additional cost savings of £0.4m, resulting in an operating profit of £3.2m for Irish radio.