Carlton Communications Announces Ten-Point Plan

Carlton Communications has revealed that it is to invest over £150 million in digital media this year, £100 million of which will go into ONdigital, in its results for the 6 months ended 31 March 1999. The media group also aims to double Carlton’s output for ITV and other channels within the next three years. These intentions form part of the 10-point plan unveiled by chief executive Steven Cain today.

Other features of the plan include intentions to build and promote the Carlton brand and its online interests, and to grow advertising revenue.

Turnover for the 6 months was £1.01 billion, an increase of 10%. Pre-tax profit fell 33% to £110.2 million, and earnings per share (after digital TV costs and exceptionals) also fell by 37% to 10.2p. Digital television, including the launch of its digital terrestrial service ONdigital in November (see Newsline), accounted for losses of £49.6 million in the 6 month period.

Steven Cain said that ONdigital has made a good start to the year – it reported having taken on 110,000 subscribers by March this year (see Newsline) and commented: “Taking the year as a whole, we expect to make progress with our existing businesses while continuing our digital investments to enhance Carlton’s potential for future growth.”

Carlton’s share price is currently 543p.

Carlton Communications: 0171 663 6363