UTV Media, owner of the Northern Ireland ITV franchise and talkSPORT, has reported a 19% decline in ad revenues at its TV division and a 15% drop at its radio operation for the first four months of the year.
The broadcasting group, which owns more than 20 radio stations across the UK and Ireland, said the group’s total revenue was down by 14% on a like-for-like basis in the four months to the end of April.
However, in a statement, UTV said: “Trading in this period was in line with our expectations and the Group achieved its budgeted operating profit.”
UTV’s revenue in its Radio GB division, which includes talkSPORT, was down by 15% based on continuing operations, compared to a market, which the company “believe declined by 18% during the same period”.
“We anticipate that revenue in this division will be down by 9% in May and June in line with somewhat improved market conditions,” the statement added.
UTV’s Radio Ireland division, meanwhile, increased revenue by 25% in the same four-month period compared to last year, with the group’s acquisition of FM104 accounting for 28% of this.
The company also benefited from the sterling exchange rates, which explains a further 14% of the increase – “The like for like decline in sales was therefore 17% and this trend is expected to continue in May and June,” UTV added.
In terms of the group’s television division, revenue was down by 19% in the first four months, which “was in line with the network”, according to UTV.
“We anticipate that revenue for the [television] division will be down by 20% at the half year,” the statement added.
On a more positive note, the group’s new media revenue was up by 2%, with its acquisition of Tibus in February last year accounting for 7% – UTV forecasts that revenue in May and June will “be in line with the same period last year”.
As of January 1, the broadcasting group had a net debt of £108.4 million, which it says has reduced over the four months to the end of April, “as anticipated in our budget”.
“We continue to focus on cost reductions across the business and are currently operating ahead of our budgeted savings. We remain confident of their achievement for the full year,” the statement said.
“We remain cautious about trading prospects for the year but our cost cutting measures are having a positive impact and we are currently in line with the Board’s expectations.”
