ONdigital Launch Costs Carlton

The development of digital television services, including the 50% ownership in ONdigital, has cost Carlton Communications £27.9 million, the company revealed this morning.

ONdigital, which is co-owned by Granada, is the world’s first full scale digital terrestrial television (DTT) service, and was launched on 15 November (see ONdigital Takes To The Air). Carlton’s chairman, Michael Green, is enthused about the emergence of digital:

“Starting a new television station from scratch is one of the most exciting and stimulating business projects I know. It is difficult to convey to shareholders the level of activity which this new project has involved… The next stage is to market ONdigital to the widest possible audience.”

Green believes that ONdigital’s DTT service holds less “cost and hassle” for customers and that this should lead it to become “the mass market platform.”

Carlton’s pre-tax profit for the year ended 30 September 1998, were up 7% to £340 million before digital costs are deducted. Turnover stood at £1,867 million, up from £1,783 million last year. Earnings per share were 32.3p, down from 33.2p last year.

In its television interests, Carlton says that increased advertising revenue offset an increased investment in the ITV programme schedule to give a growth in profits. During the year Carlton also launched three new channels available across the cable networks: Carlton Kids, Carlton World and Carlton Cinema.

Carlton Communications: 0171 663 6363