Sharewatch: Profit Boost Sends UBM Shares Soaring

Media stocks put in a largely poor performance last week, with few companies managing to break the 1% growth mark. However, United Business Media rose above the pack with a strong increase of 5.56% in week on week analysis.

The publishing company’s success is due largely to results published on Friday, detailing a massive rise of nearly 52% in operating profit, fuelled by a significant turnaround from its technology and health care division, CMP Media (see United Business Media Sees Operating Profit Jump By 52%).

Elsewhere, newspaper heavyweight Trinity Mirror rose by a respectable 2.89% week on week as the company published healthy interim results. Chief executive Sly Bailey, revealed a rise in pre-tax profits of 27% from £80.4 million £101.8 million during the first six months of 2004, while advertising revenue grew by 5% overall (see Strong Performance From Trinity Mirror Despite Mirror Fiasco).

The publishing boss also revealed that the scandal surrounding the publication of fake photographs by the company’s flagship Daily Mirror had dented circulation, causing a 5.3% dip year-on-year.

Radio giant Capital saw the week’s biggest decline in share price. The company lost 8.25% as the latest RAJAR figures revealed a lacklustre performance by newly installed breakfast host Johnny Vaughan at the company’s market-leading Capital Radio (see RAJAR Results Q2 2004: Vaughan Fails To Boost Capital).

The closing prices of media company shares on Friday were: