UBC Profits Rise As Digital Revenues Revealed
UBC Media, the UK’s largest independent radio production company, has announced increased profits and rising turnover in interim results published today, following earlier predictions of increased earning with the announcement of its first digital revenues.
The company’s interim statement for the six months to 30 September reveal a turnover of £7.15 million, up 9.8% on the same period last year, while profit before Goodwill Amortisation and Development Expenditure rose by 262.5% to £551,000 in the same period.
UBC states that the growing popularity of digital radio is fuelling its success, with sales of DAB digital radios predicted to reach one million by the end of the year, currently outselling analogue radios on the High Street. The broadcaster also claims that increased listening to digital radio via BSkyB, Freeview and cable is making a significant contribution to listening figures, with UBC well positioned to benefit from the growth as the owner of a network of local stations and a national digital licence.
Commenting on the company’s performance, Simon Cole, CEO said: “We are encouraged by the continued success of our production and commercial sales business, and are particularly pleased with the performance of Smooth Operations since we acquired it in July.”
He added: “Recent research for the Digital Radio Development Board suggests that 29% of households will be digital radio households by 2008, and our digital radio stations, digital data capacity and digital radio technology will all benefit from such rapid take-up. With our cash utilisation down to £262,000 for the period, we are in a strong position to deliver for our shareholders as the digital radio revolution progresses.”
The broadcaster stated that 2004 had been an “important year” for its development, with a significant focus on returns from investment in digital assets. The company remains optimistic, claiming to be “confident of the group’s prospects in its chosen markets”, underlining previous forecasts in which it promised to continue to “meet expectations” (see UBC Claims Outlook Is Positive For This Year).
UBC Media Group: 020 7453 16001 www.ubcmedia.com
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