UTV’s Irish radio division falls 4% in first half of 2011

UTV, which owns Cork’s 96FM, saw revenue at its Irish radio division fall 4% in the first six months of the year to £11 million (€12.4m).

However, the controversial hiring of former Sky Sports presenters Andy Gray and Richard Keys at one of their British radio stations will boost annual profits at group level, the company said.

UTV said the Irish advertising marketplace continued to be “very challenging”, adding that with further cost savings of £0.3m, its Irish radio operating profit was £200,000 lower at £3m.

The company said, however, that it anticipates its Irish radio division will continue to outperform the market but in the three months to September 30, Irish radio advertising revenue is still likely to record a reduction of about 5%, “reflecting the current macro-economic factors and uncertainties in the Irish market”.

UTV said the hiring of Keys and Gray, who were at the centre of a sexism row earlier this year, are pulling in more than 100,000 extra listeners a week to TalkSport since starting in February.

UTV, which is also the ITV licence holder for the North, reported flat revenues at its British radio division of £25.2m in the period compared to the previous year, which coincided with the World Cup.

Head of TalkSport Scott Taunton said the station is on target to see full-year revenues growth as he hailed the decision to employ the pair: “They’ve brought to the station a contact book that we’ve never had before.

“Most presenters or reporters can get an interview with Wayne Rooney but they have him in the studio for a whole hour,” he said.

Goodbody analyst Gavin Kelleher said: “Overall, another highly resilient performance from UTV in difficult advertising markets, with the group continuing to show out-performance in its advertising revenues.”

UTV employs more than 900 staff in Ireland and Britain. On a group level there was a 15% increase in pre-tax profits to £10.9m, but flat revenue of £59.1m.

The company will receive a boost from the Rugby World Cup in the second half of this year, while the Olympics and European football should ensure 2012 is a strong year.

Bloxham Stockbrokers said: “These are positive results despite tough comparisons of a World Cup year last year, with progress made on both debt and a dividend.”