UTV posts 12% total revenue decline for 2009

UTV Media has reported a 12% year on year revenue decline for the year to the end of October.

The Belfast-based company saw revenues fall by 21% year on year at its Northern Ireland ITV franchise, which is under-performing compared to the rest of the ITV network.

UTV attributed the significant drop to a decline in advertising spend in the Irish market.  It also said that it expects its TV ad revenue to be down by 10% year on year this month and by 3% in December.

However, the firm’s GB Radio subsidiary, which owns TalkSport, is ahead of the overall radio market.  UTV posted a 10% year on year drop for the 12 months to the end of October for GB Radio, which is less than the expected 13% overall market decline for the same period.

The company said improved market conditions should ease GB Radio’s decline in November and December.  Revenues are expected to fall just 3% year on year this month and 1% next month.

UTV added that the football World Cup in South Africa next summer will boost TalkSport and its recently acquired Sport magazine’s revenues, which in turn will offset any weaknesses in other areas of the business in 2010.

In a statement, the company said: “Although the difficult economic environment continues to impact upon advertising revenue, the rate of decline is easing in all of our markets.  Airtime bookings remain extremely short term, offering limited visibility, and therefore we continue to be cautious about trading prospects for 2010.”