16% fall in group profits at UTV

UTV Media is confident the burgeoning recovery in the Irish advertising market can be sustained this year, ahead of the launch of its new Irish television service.

The Belfast-based media group — which is due to launch its UTV Ireland television channel next year — yesterday reported a 16% fall in group profits and a 4% revenue decline in its annual results; but a positive outlook for its Irish-based business divisions.

The results showed a contrasting performance in both halves of 2013 (operating profit falling by 36% in the first, but rising by 10% in the second), but management said that the tough trading conditions seen early last year settled as advertising markets started responding to the improving economic climate.

After five years of decline, television advertising in the Republic grew by 11%, in the second half, with radio advertising also moving into growth mode.

“While the advertising market in the Republic has been particularly challenging over the last few years, there is optimism that a corner is slowly being turned,” UTV chairman Richard Huntingford said.

“Growth in our Irish television advertising revenue, in the second half of 2013, has continued into the first quarter of 2014, which is expected to be up by 11%.”

On an overall group basis, UTV Media saw revenues dip by 4%, last year, to £107.8m (€128.6m) and pre-tax profits fall by almost 16% to £16.9m.

However, net debt was reduced, slightly, to just over £49m and the full-year dividend of 7p per share was maintained from the previous year.

UTV’s television revenues were marginally down, from £32.5m to £31.9m, but its Radio Ireland division saw revenues remain flat at just under £21m. The Radio GB unit saw revenues fall from £54.5m to £50.6m.

However, annualised revenues are thought to have risen by 9%, 7%, and 5% — respectively — in the Radio Ireland, Radio GB, and television divisions during the first quarter of this year, with single-digit percentage growth likely for April, in the Irish radio portfolio.