Ulster TV Profits Fall, But Outperform ITV Network
Pre-tax profits before exceptionals at Ulster Television (UTV) fell slightly in the six months to 30 June, mainly due to the downturn in advertising levels. Interim pre-tax profits came in at £6.4 million, compared to £20.4 million for the same period last year, which included the £13.4 million profit contribution from the sale of the company’s stake in Société Européenne des Satellites.
Television advertising and sponsorship income fell by 4.9% to £18.8 million; this compares favourably to an estimated 15% downturn in total ITV advertising. UTV’s share of the ITV advertising market increased to a record 2.1%, the group said.
The operating loss from UTV Internet was £0.4 million, which compares with a slightly lower loss of £0.3 million for the four month period in 2000. Television operating profit fell by £0.4 million to £6.8 million, exceeding UTV’s performance targets.
Profits from the group’s radio operations are expected to improve in the second half and the Board said it expects its internet activities to be profitable at the year end.
Group operating profit before amortisation of goodwill was flat at £6.9 million.
UTV says that cost control will remain a key factor into the second half of the year. Most analysts are now not expecting any improvement in advertising levels until well into next year. “In this environment, the market has adopted a short term focus and, with advertisers wary of forward commitment, it is increasingly difficult to forecast advertising revenue,” said chairman John McGuckian.
At 11:00am today, stock in Ulster Television was down 1p at 250p.
