Ulster Television (UTV) has announced record results for the six months to 30 June 2005, but warned that television advertising revenues face a rough ride in the near future.
The company, whose assets include UTV, the channel 3 licensee in Ireland; six local radio stations, and internet service provider UTV internet, announced group turnover up 17% to £35.8 million and operating profit before exceptional items up 11% to £9.6 million.
UTV’s acquisition of The Wireless Group on 6 June 2005 (see UTV Approves Bid For TWG), also served to give an extra boost to its results at the end of the six months to 30 June.
However, television advertising revenue was reported to be down 3% against a strong comparative period last year, which included Euro 2004. UTV also stated that the second quarter of the year had been disappointing, as the UK advertising market was generally weak following a significant reduction in Government expenditure during the General Election campaign.
New Media revenue saw the largest percentage growth for UTV, growing by 56% year on year to £3.9 million, although revenue dipped by £0.1 million on 2004 to £0.4 million.
Commenting on the company’s current outlook, John McGuckian, chairman of UTV, said: “UTV is now a significant player in the UK radio market through the acquisition of The Wireless Group. Good progress has been made in integrating Talksport and the 16 local radio stations which we are re-branding as UTV Radio. The outlook is promising in radio and in television tight cost control should help us to overcome a soft advertising market. New Media has had a strong first half with turnover up by 56% representing significant growth in its customer base in internet and telephony services.”
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