UTV delivers 'resilient' half year

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

Get 6 issues 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

Sign up

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