SMG’s total underlying revenues were down 2% to £88.6 million in the first six months of 2006. SMG attributed the fall in revenues on the contract rights renewal system in addition to a weak advertising market.
Television revenues fell by 7%, in common with ITV1 as a whole, to £57.9 million, in the first six months of 2006.
In radio, SMG said that industry outperformance saw Virgin Radio’s revenues grow by 5% to £11.1 million.
Underlying revenues in cinema grew by 5% to £8.5 million, whilst outdoor advertising revenues grew by 13% to £11.1 million.
In its interim results statement, SMG said: “For the remainder of 2006, we expect our broadcast television business to perform in line with ITV1 as a whole, given that it too is subject to the effects that the Contract Rights Renewal (CRR) process has on ITV1 in an already depressed TV market.
“In radio, we expect to continue to outperform the market as Virgin Radio’s schedule and music proposition build momentum. Cinema, on the other hand, continues to be affected by the broadcast market overall and we anticipate another tough year for Pearl & Dean. In outdoor, Primesight should continue to outperform a growing market.”
However, earlier today SMG said that they would be selling off Pearl & Dean and Primesight (see SMG To Sell Pearl & Dean And Primesight).
Chris Masters, chairman of SMG, said: “We continue to make excellent progress in developing our strategically important on-line presence aimed at creating new revenue streams. These initiatives will become increasingly important as we move forward.”
Donald Emslie, acting chief executive, said: “SMG has made good progress in the first half of 2006 on many fronts. We have grown pre-tax profits, despite unpredictable advertising markets, made headway in lightening the impact of regulatory costs and taken significant steps in creating new businesses and sustainable revenue streams, most notably in the online environment.”
Related Links
