UTV’s operating profit’s rose 8%

OPERATING profits rose 8% at Ulster Television last year from €19.9m to €21.4m.

The broadcasting group owns several radio stations in the Irish Republic apart from the ITV franchise in Northern Ireland.

It broadcasts throughout the island and expansion through radio acquisitions and the addition of an Internet division has been the hallmark of its strategy to lessen its exposure to tv advertising.

It bought Dublin-based radio station Lite FM in December for €15.3 million and Limerick’s Treaty Radio Ltd. for €16.9 million in April.

It also owns two radio stations in Cork including County Sound.

UTV’s shares rose 4.5% in early trading while Goodbody Stockbrokers see the shares as a good buy.

Chairman John McGuckian said tv advertising may climb in 2003.

However he added it was “impossible to forecast advertising revenues” in 2003.

UTV expects to achieve advertising growth of 2% in the first quarter of this year against a 5% decline for the rest of the ITV network in the UK, he said.

So far this year the shares have fallen by more than the industry average and Goodbody Stockbrokers rated the shares a buy in their January review of the company which had forecast operating profits of €20.9m for the year for the group.

Results summary:

Group turnover increased 10% to €69.2m

Television advertising revenue continued to outperform other ITV companies (an increase of 4.7% compared to a decrease of 1% for ITV as whole)

Group operating profit before goodwill amortisation increased by 8% to €21.4m with all sectors of the business contributing

Group profit before tax and goodwill amortisation increased by 3.7% to €20.34m

Television operating profit of €18m down on the previous year

Radio operating profit increased sharply to €2.9m

Adjusted earnings per share up 3.5%

Net debt at 31 December 2002 of €40m almost three fold increase

increase primarily due to acquisitions .

dividend for year up 4.3%

Other highlights :

Acquisition of Treaty Radio (Limerick) and City Broadcasting (Dublin) combined with County Media (Cork) to create a major radio group in the Republic of Ireland.

Has spent €70m acquiring radio assets in Ireland in recent years.

It has emerged that the TV group had a lower profit in the second half of 2002 as acquisitions pushed up interest costs and net income fell by 1.4%.