Granada Reports Double Digit Earnings Growth In First Half Results

Granada has issued results for the six months until 27 March 1999 today, with pre-tax profit increasing 15% to £315 million. The group, which has interests in both media and leisure, also reported a 6% increase in turnover to £1.98 billion. Overall, diluted earnings per share for the group were up by 14% to 23.8p for the six month period.

These results do not include the costs incurred by the launch of ONdigital, the terrestrial digital television broadcaster which is jointly owned by Carlton and Granada (see Newsline).

Granada’s chairman, Gerry Robinson, said that the launch of ONdigital had been successful, having gathered 110,000 subscribers by March 1999 (see Newsline). The group expects to see an increase in the take-up of its digital television service following the beginning of its free set-top box giveaway last month (see Newsline).

The company is expecting higher growth in the second half of the year, and intends to expand its programme production interests. Earlier this year, Granada purchased the Mirror Group’s 18.6% stake in the Scottish Media Group (see Newsline), and last week Granada was rumoured to be interested in buying the Mirror Group’s channel, Live TV (see Newsline).

Granada’s three media businesses – free-to-air broadcasting, programme production and pay television – showed a combined 8% increase in profit to £122 million.

Granada: 0171 451 3000