Carlton Communications and Granada may report a combined loss of £300 million in their full-year results, due to be released later this week. According to the press speculation, Carlton will show heavier losses than Granada.
Both groups have been hit by write-downs following the collapse of the joint ITV Digital venture. Further strain has come from the very weak advertising conditions that have permeated the majority of the year.
Granada is also expected to announce a £500 million write-down on the value of Meridian and Anglia Television franchises it acquired from United Business Media for £1.8 billion two years ago, at the height of media stock boom. Media company valuations have since depressed considerably, by around 70%, leading Granada to make the write-down on its balance sheet. The move could put pressure on Carlton to complete a similar write-down on the value of its HTV licence, acquired in October 2000.
Pre-exceptional items, Carlton is expected to report a pre-tax profit of around £46.8 million, down over 60% on last year’s figure. Granada is predicted to show a pre-tax profit of around £155 million, down from £201 million in 2001.
By early afternoon today shares in Carlton were down 2.5p at 135p. Granada was also trading down 2.5p at 80.5p.
