Scottish Media Group (SMG) has reported a 11% rise in underlying operating profit for 2005, driven by a 4% year on year increase in revenue, reaching £210 million.
Television revenues for the Group grew by 3% in 2005, with operating profits jumping by 19%, resulting in SMG’s television business living up to expectations and outperforming ITV1 in airtime revenues and in peak-time audience share (see
SMG Sees Business On Target For End Of Year).
Virgin Radio outperformed the market, with revenues up by 11% and operating profits rising by 23% year on year.
Commenting on the results, Andrew Flanagan, chief executive of SMG, said: “Overall, this has been a solid trading result for SMG, coupled with some positive regulatory outcomes, which has resulted in a year of strong progress.”
Chris Masters, chairman of SMG, added: “The Group’s encouraging overall performance and strong profit growth, coupled with its significant progress in a new business initiatives, has underpinned the Board’s confidence in the Group’s long term prospects.”
Looking to the rest of 2006 SMG remains optimistic, despite advertising markets remaining uncertain in the first quarter of 2006.
SMG expects a much stronger second quarter, fuelled by Easter and the World Cup. The Group reported to be performing in line with expectations and will continue to deliver profitable growth in 2006.
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