Ulster Television’s Profits Up As Prospect Of Granada/Carlton Take-Over Looms

Ulster Television has reported an increase in profits as part of its half-year results. Profits before taxation are said to have reached £20.4m by June 2000. For the same period in 1999 they were £2m, due to £4.2m spent on restructuring. Advertising and sponsorship income increased by 12% to £20m, and counted for over 97% of group turnover. Total group turnover was £20.4m, up 11% on last year’s figure of £18.5m.

Ulster’s sales house, TSMS, was recently acquired by Granada Media as part of its United News and Media take-over (see Future Of ITV Laid Out As Granada Seals Deal). It is thought that TSMS will shortly be subsumed into Granada’s sales house and cease to exist. In his chairman’s statement, Ulster Television’s J B McGukian said “The two ITV sales houses, Granada Media and Carlton, have each expressed their willingness to enter into new contractual arrangements in respect of our airtime sales. We expect to conclude an arrangement shortly.”

Ulster Television shares were the best performing in the media sector last week (see Sharewatch). This was thought to be partly down to Granada’s recent investment in the Republic of Ireland’s TV3 (see Granada Media Begins European Expansion With Stake In TV3). The deal will see Granada form a consortium with Canada’s CanWest Global Communications Corp, which owns a further 45% stake in the channel and also, significantly, a 30% stake in Ulster. It is thought that both Granada Media and Carlton could be interested in taking over what is one of the last remaining independent ITV companies, and that managing director John McCann could be open to offers.

Ulster Television: 01232 328 122