SMG released a trading update this morning, reporting that it will perform broadly in line with analysts’ forecasts for 2005.
The group expects to perform well, despite soft advertising markets in the second half of 2005, with the company’s Scottish TV and Grampian TV expected to outperform the ITV Network for the year as a whole, both in revenue and audience terms.
However, the company has seen a slow second half in the regional television advertising market. SMG said its Network Productions & Solutions divisions have continued good growth across the year, resulting mainly from new commissions and contract wins.
Elsewhere, the company reported consistant success for Virgin Radio, which has outperformed a “difficult” market and continues to show year on year revenue growth.
Primesight, SMG’s outdoor advertising business, continued to grow in line with expectations for 2005, while the group’s cinema activities are expected to improve in Q4, due to the stronger film schedule. Admissions for the year to date are currently lower than those of 2004.
Pearl & Dean’s revenue will show some growth for the year, according to SMG, which reports an increased share of cinema screens as well as a two year contract extension, to the end of 2010.
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