UTV Boosts Radio Portfolio With LMFM Acquisition
Ulster Television has announced the acquisition of LMFM, a local radio station in the Republic of Ireland, for almost £7 million, expanding its radio portfolio to encompass Drogheda in County Louth.
An application for approval of the acquisition has been submitted to the Competition Authority, with a response expected in January 2005.
LMFM operates as an independent local radio station in the Louth/Meath area and is the most listened to radio station in that area. The station’s coverage area is immediately to the north of Dublin and has a population of 250,000. With a market share of 27% for the 12 months to June 2004, LMFM has enjoyed an impressive market share since it commenced broadcasting in 1989. In addition, LMFM was awarded a renewal of its broadcasting license in September 2003, allowing for another 10 years of guaranteed operation.
The acquisition of LMFM represents a further step in UTV’s stated strategy to expand its media interests across Ireland. Together with the successfully relaunched Q102 in Dublin, the company claims that LMFM will strengthen its position in the east of Ireland.
The directors of UTV believe that LMFM represents another significant opportunity for the UTV Group with the potential for both increased audience and revenue growth at this station enhancing the scope of UTV radio in the local and national radio markets.
Commenting on the acquisition, John McCann, group chief executive of UTV said: “We are absolutely delighted to announce our acquisition of LMFM. This is an important strategic move for UTV which together with our acquisitions of 96 and 103FM in Cork, Live95FM in Limerick and Q102 in Dublin, further strengthens our multi-media offering throughout Ireland. We look forward to working with the management team of LMFM to build upon the successful radio service they have established in the Meath/Louth region.”
Michael Crawley, chief executive of LMFM added: “The success of the station to date is attributable to the delivery of a first class local news and information service combined with playing great music. We believe that UTV will provide the expertise and resources required to further develop LMFM to the highest standards.”
UTV has received approval in principle for the acquisition from the Broadcasting Commission of Ireland, with full approval for the deal expected to follow shortly.
The company enjoyed a strong financial performance in 2004, reporting rising profits earlier in the year and forecasting an increase of 16% for advertising revenue during the first six months of the year (see Ulster TV Revenue Set To Grow By 16%).
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