UTV Ad Revenue Outperforms ITV Network
Ulster Television (UTV), part of the ITV Network, saw advertising revenues rise by 0.3% in the six months to the end of June, substantially outperforming the network as a whole, which saw a 5.6% decline in airtime revenue.
UTV’s first half results, released this morning, showed pre-tax profits drop by 9.4% to £5.7 million; turnover rose by 8.6% to £22.7 million. The group’s internet division moved into profit of £0.2 million, compared to a loss of £0.4 million during H1 2001.
Radio advertising in Ireland followed a similar pattern to television, with weak national spend being offset by a stronger local market. However, the positive impact of the World Cup was not as great in Ireland as in Great Britain and so ad revenues at UTV’s County Media station fell by 5% year on year.
Outlook Commenting on the outlook for the ad market, chairman John B McGuckian said: “A much used phrase in media companies has been, and continues to be, ‘limited visibility’. This lack of confidence about future revenues is unsettling for shareholders but is, perhaps, prudent given the uncertainties in the marketplaces in which our advertisers operate and, indeed, in the economy as a whole. In all this uncertainty, it would not yet be appropriate to predict a definite return to growth.
“Nevertheless, it would be equally inappropriate to ignore some positive signals which are beginning to emerge in our television business where, in each of the four months to the end of August 2002, we have recorded significant improvements in our advertising revenues.
“In the quarter to 30 September 2002, which is virtually all post-World Cup, we would expect to increase our advertising revenue by 15% year on year. Whether or not this represents the first green shoots of recovery remains to be seen. There are no firm indications yet as to the likely performance of the last quarter of the year and, while encouraged by recent results, we will remain cautious until a period of sustained growth has been demonstrated.”
Independent News & Media Profits Dip In Tough Ad Climate
Advertising revenue at Independent News & Media (INM) – publisher of the Independent newspaper in the UK – fell by 6.8% during the first half of the year, whilst circulation revenues grew by 2.1% on 0.5% rise in volume market share.
The tough ad conditions saw pre-tax profits dip 10.2% to E51.7 million in the six months to 30 June 2002; turnover declined by 3.2% to E635.1 million. Turnover and operating profit, down 6.0%, were both affected by a devaluation of the South African rand.
INM says that its UK operations outperformed the majority of its competitors, thanks to a strong contribution from the Northern Ireland division, which has been largely immune to the soft advertising conditions.
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