Ulster Television expects to see increase in advertising share

Ulster Television says it expects to raise its share of total advertising income in the current year, while hoping to keep operating costs at the 2000 level.

The group also says it aims to bring its internet operations into profit by the second half of 2001.

Ulster TV has reported pre-tax profits of £27m for the year to the end of December, including an exceptional profit of £13.4m from the sale of its remaining shareholding in Societe Europeenne des Satellites. Its profit figure for 1999 was £7.8m.

Group operating profit before goodwill rose by 13% to £13.4m from £11.9m.

Group turnover increased by 6.5% to £40.8m from £38.3m, with television advertising and sponsorship revenue 6.4% ahead at £39.8m from £37.4m the year earlier.

Adjusted earnings per share increased by 14% to 18.34p, from 16.04p. A final dividend of 5.1p is payable, making a total for the year of 8.7p - a 16% increase on last year's 7.5p.

The company says the customer base of UTV Internet has trebled since launch last June and further products have been added to the product.

Ulster TV says the sluggish performance of ITV advertising revenue in the early part of 2001 was relative to the exceptionally strong growth in the same period last year, which had been fuelled to a significant degree by a surge in dotcom marketing expenditure.

The company says advertisers currently appear reluctant to make strong commitments due to a lack of clarity as to how the economy might be moving, particularly in the period of a general election.

But it says ITV ratings have recently improved, which should provide a better basis for a return to growth in the second half of the calendar year.