Record annual profits for UTV

UTV has reported record annual profits of £23.3m (almost €28m), despite taking a significant impairment hit in its Irish division.

The Belfast-based broadcasting and media group — which owns Cork radio stations 96FM and C103 — said its profits for 2011 were up by 10% from the £21.3m generated in 2010.

Operating profit — coming in at £26.8m, 3% up on the previous year — and group revenue, which was up by 2% at £121.6m, were in line with market expectations.

On a divisional level, UTV’s British radio arm delivered 6% revenue growth. However, its Irish radio business — which also includes Dublin stations FM104 and Q102, among others — saw revenues fall by 4%.

Group management yesterday said the business took a non-cash impairment charge of £45m on intangible assets in the Republic, with £19m due to the higher sovereign debt risk.

Chief executive John McCann said the figures were very pleasing, despite “what has remained a testing economic background”.

He added that management is confident of the business continuing to perform this year.

UTV’s interim chairwoman Helen Kirkpatrick said 2012 has started well for the group, despite the economic uncertainty.

“We expect revenue in the first four months of the year to be in line with budget,” Ms Kirkpatrick said.

“It’s expected that the major sporting events, during the summer — the Uefa European Championships and the London Olympics — will have a positive impact in attracting a large volume of both listeners and viewers to our radio and television output, generating an attractive prospect for advertisers.”

Less than a quarter of UTV Media’s group profits come from its television arm, with radio driving growth.

Television revenue rose by 1% in 2011. The group also lowered its net debt by 23%, or £16.8m, last year, to £54.7m. It has now reduced debt by 49%, or nearly £53m, in the past three years.

Last year’s proposed final dividend has doubled to 6p per share — UTV being one of the few media companies consistently paying shareholder dividends since the economic downturn.

Meanwhile, the group has said it is getting closer to finding a new chairperson to replace the recently departed John McGuckian.

Mr McGuckian departed last month, following allegations that his interests with Dublin-based investment company TVC Holdings, which holds an 18% stake in UTV and of which he is a non-executive director, posed a conflict of interests.