Carlton Communications today announced an 8% increase in pre-tax profits and released an upbeat statement about its progress during 2000. Financial results for the year ending September showed profits of £342m as the group announced progress in the three key areas of sports rights, programme-making and pay tv.
But there was little hope on the horizon for the advertising outlook of ITV with the group admitting a weakening of demand in the fourth quarter of the year, despite an overall year on year growth of 9% to £692m. ABN Amro said that they did not expect to see any significant positive growth in ad revenue at the group until the final quarter of the 2001 financial year.
Underlying profits were also weaker than expected, with digital operating losses, in particular, reaching £42m. Operating profit at Technicolour, the group’s film and video group which went up for sale earlier this year, was below forecasts at £150m. Michael Green said strategic negotiations with a buyer for the arm were in progress and is hopeful of concluding a deal within a few weeks.
The disposal of Technicolour was announced as part of the group’s proposed merger with United (see Carlton/UNM Merged Group Plans For The Future). The merger was eventually blocked by the Competition Commission, but the group acquired the HTV licence as a result of Granada’s domination of ITV and it retains its position as an ITV giant (see Granada Media Consolidates Ownership Of Meridian And Sells HTV To Carlton).
“2000 has been a defining year for Carlton,” said chairman Michael Green. “We are developing a focused television business with strong positions in free television, pay television, programme-making and the digital, interactive future.” The year has seen the group open up the market for major sports rights, acquiring the Football League and Worthington Cup for ONdigital and the Premiership highlights for ITV. Programming output has increased and ONdigital established as a major pay-tv operator.
Carlton Interactive, the group’s online business, has continued to develop, its latest venture being the newly-launched Taste portal, a joint venture with Sainsbury’s incorporating SimplyFood.co.uk, its dedicated food site, and Carlton Food Network, its digital television channel.
Carlton Active, the group’s interactive television business, launched the first interactive commercials and programmes through ONdigital and developed the first fully interactive TV series, Baby Baby, on ITV. It will roll out interactive advertising on ITV from February 2001 and further services are planned for Champions League football, CITV and the Brit awards.
Carlton Communications: 020 7663 6363
