Northern Irish broadcaster UTV Media posted what it termed a 'resilient' set of first-half results, pushed higher by earnings in the Radio division.
During the six-month period, revenue rose from £59.1m to £61.55 while pre-tax profits were up by 3.0% to £11.2m (2011: £10.9m). Basic earnings per share fell from 9.34p to 7.07p. Profits were affected by a reduction in both the Television and New Media divisional operating profits.
Over the period net debt was reduced by £13.1m over the 12 months to June to £50.0m. The interim dividend was increased from 1.50p to 1.75p.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Earlier this year the company acquired Simply Zesty, which boosted turnover in the New Media division by £0.6m. Within New Media, Internet revenue slipped due to competitive pricing while revenue at its web development business, Tibus, was maintained. Overall new media operating profit was £0.6m (2011: £0.9m).
Within Television, operating profits were reduced to £2.1m (2011: £3.1m) after net advertising revenue was down by 3.0%, an underperformance of the ITV1 network, which was flat. Within this, television advertising revenue from London was on a par with the ITV1 network while revenue from Ireland was down by 8.0%. Total television revenue was down by 2.0% to £16.9m (2011: £17.2m).
The Radio division generated operating profit with the GB Radio division of £6.9m (2011: £5.8m), an increase of 18% year-on-year. In Ireland, the advertising revenue market remained very difficult, the firm said, and is estimated to have been down by as much as 10% in the first half. However, a strong audience delivery in the key urban areas led to a "very significant outperformance" by its stations which, on a like-for-like basis, increased revenues by 4.0%. Operating profit at its Irish radio stations increased by 10% in local currency which, after adjusting for foreign exchange, was pared back to a 5.0% improvement in operating profit to £3.1m (2011: £3.0m).
John McCann, Group Chief Executive, said: "The group has posted a resilient performance for the first half of 2012, growing both revenues and pre-tax profits in a choppy market. It has also seen the business undergo some exciting operational developments, including a new Network Affiliate Agreement with ITV; talkSport securing innovative broadcasting agreements with both the Barclays Premier League and the Football Association; and the acquisition of Simply Zesty, Ireland's leading social media agency.
"The emphasis on adding value right across UTV's media assets, coupled with disciplined balance sheet improvement, provides a strong platform for future growth."
The share price fell 0.75% to 133p by 14:36.
NR
-
Watch out for fake Steven Bartlett video – you could lose thousandsScammers are trying to tap into the Trump tariffs chaos, but knowing what to look out for could save you thousands of pounds, says Kalpana Fitzpatrick
-
Can Donald Trump fire Jay Powell – and what do his threats mean for investors?Donald Trump has been vocal in his criticism of Jerome "Jay" Powell, chairman of the Federal Reserve. What do his threats to fire him mean for markets and investors?
