Ulster Stock Rises On Positive Results

Shares in Ulster Television jumped this morning as it announced a strong set of financial results and said that it expects to return to better growth in the second half of this year, following a sluggish ratings period at ITV. Ulster also said that it plans to bring its internet business into profitability in the second half.

This outlook comes as the group unveils pre-tax profits up by 245% year on year to £27.0 million. Television profit was up 20% at £14.3 million, whilst television ad revenue increased by 6.2% to £38.9 million. Group operating profit before goodwill rose by 13% to £13.4 million.

Chairman John B McGuckian acknowledged that ITV revenue has suffered from harsh year on year comparisons so far in 2001, following the dotcom marketing boom of the previous year. However, he said: “As we did not benefit from the substantial increase in dotcom advertising expenditure last year, we are less likely to be affected by any retreat that may happen this year. While we are not immune from the effects of a short term adjustment in the allocation of top-line advertising budgets to ITV, nevertheless the combination of market diversity and excellent ratings will ensure that we are able to maximise revenue opportunities and again improve our share of total ITV advertising income in the current year.”

The peak time share for UTV in the first two months of the year was 42%, placing it at the top end of the ratings table of ITV companies.

At midday today stock was up 30p at 289p.

Ulster TV: 01232 328 122