UTV offers better news for media sector

Ulster Television today showed it had avoided the worst of the media downturn, as a fall in profits at its TV arm was more than offset by income from its radio and internet divisions.

The group, along with the media industry in general, has come up against tough conditions as companies cut their advertising budgets.

However, it today showed operating profits for the six months to June 30, excluding one-off costs, edged up from £6.9m to £7m.

Turnover at the Belfast-based group, which employs 310 staff, rose 8.1% to £22.5m.

Chairman John McGuckian said: “I am pleased to report a period of good operational performance and further strategic development in what were very testing markets.

“Our TV revenues continued to outperform ITV and our radio operations performed in line with our expectations,” he said.

He could not predict when the media sector would recover, but said the group was seeing some positive signs.

“In all this uncertainty, it would not yet be appropriate to predict a definite return to growth.

“Nevertheless, it would be equally inappropriate to ignore some positive signals which are beginning to emerge in our television business,” he said.

During the half year its UTV television station, part of the ITV network, saw profits fall £800,000 to £6 million, partly hurt by an increase in network programme costs.

Advertising revenues fell 2% in the first quarter but rose 2% in the second, helped by increased advertising to tie in with the World Cup.

The group had also seen “significant improvements” in advertising revenues during the four months to the end of August and for the quarter to the end of September it is expecting advertising revenues to jump ahead 15% year-on-year.

Its radio operations, including Cork’s 96FM and 103FM, saw profits rise to £791,000 from £490,000.

The group boosted its radio operations during the six months, buying Limerick-based Treaty Radio.

The radio operations saw weak national advertising but good demand at a local level, Ulster said.

And its Internet operations moved into the black – recording a £150,000 profit against a £376,000 loss as the group cut costs.

Bottom-line pre-tax profits were impacted by goodwill charges relating to acquisitions in its radio business and came in at £5.7m, down from £6.4m.

Shareholders will be paid an interim dividend of 3.95p, up from 3.8p this time last year.