Launch Of Digital TV Will Hit Carlton’s Profits

Finance company Merrill Lynch have projected that the launch of British Digital Broadcasting (BDB) and ITV2 will cut into Carlton Communications Plc ‘ profits for the next two years. Merrill Lynch predict that the launch of ITV2 will cost £20m in its first year, of which Carlton’s share will be around £7m. The cost of retuning analogue TV signals to make way for digital will also cost BDB around £20m.

Overall, 1999 should see Carlton’s profits grow 3 per cent to £163m.

Merrill Lynch: 0171 772 2337