Granada Media Shows Modest Profit Rise In First Final Results Since Flotation

Granada Media has released its first set of annual results since its flotation and consequent separation from the catering arm of the company in July this year (see Granada Media Begins Conditional Trading). The results revealed modest growth for the year to 30 September, with operating profit up 8% year on year at £253m, while turnover rose 9% from its 1999 total of £998m to £1087m.

Since the flotation, Granada Media has also been at the centre of the consolidation which has taken place among the ITV companies, with its acquisition of United News & Media’s TV assets for £1.75m (see Future Of ITV Laid Out As Granada Seals Deal). This was followed by the consolidation of ownership of Meridian and sell-off of HTV to Granada’s largest remaining rival, Carlton (see Granada Media Consolidates Ownership Of Meridian And Sells HTV To Carlton).

This consolidation process has, the company stated, “significantly strengthened our advertising sales proposition. We will be able to offer advertisers a macro, or package, of Meridian and Anglia alongside London Weekend Television, and deliver the key ABC1 demographics of the South East.”

Delivering to advertisers has not been the easiest task this year, however, and in its results statement the company admitted that during the summer of 2000 ratings for ITV had been lower, thanks in part to events including the Olympic Games and Big Brother. Improved ratings of 39% peak time share in October were thanks to “an improved schedule and better marketing”, it promised, predicting a strong recovery during this financial year, including a marginal improvement for November and a 7% year on year revenue rise already booked for December.

ONdigital, Granada’s digital TV interest, is said to have reached 878,000 of the one million subscribers it aims to have signed up by the end of the year. “With the alignment of ownership between Granada and Carlton following recent ITV consolidation, there is significant scope for ITV and ONdigital to work together for the benefit of both in the future,” said Charles Allen, executive chairman, presenting the results.

Shares in Granada during autumn following a downgrade due to ITV advertising forecasts (see Granada And Carlton Stock Tumbles After Downgrade). Not much recovery has been seen since September. At 11:30am today, shares were down 5½p on yesterday’s closing price, at £3.76½.

Granada Media: 020 7620 1620

UK media shares are monitored and listed daily in MediaTel Newsline’s Sharewatch