UTV reports pre-tax profits decline

TalkSport owner UTV reported pre-tax profits of £18.1 million in 2009, down 12.6% on 2008.

Revenues across the group were £112.1 million for the 12-month period, down from 6.3% on the previous 12 months, according to the media company.

UTV’s largest division, GB Radio, which owns TalkSport and 13 local radio stations, recorded revenues of £43.2 million, down from £45.3 million in 2008.  On a like-for-like basis, ad revenue from the GB radio division was down 8%, according to the group’s financial results.

However, despite a poor 2009, UTV said revenues had improved in the first four months of 2010, and the rate of decline in Irish Radio has slowed.

The group forecasts GB revenues to be up 6% on a like-for-like basis in the first few months of 2010 as a result.

TalkSport, meanwhile, is expected to gain advertising and sponsorship traction due to its 2010 World Cup and Premier League coverage.  The group predicts revenue growth of up to 16% for the station in the first four months of this year.

However, revenue at GB’s local stations are expected to be down 3% in the same period.

John McCann, group chief executive at UTV Media, said: “The current, prolonged downturn is unprecedented. Despite that, I believe today’s results demonstrate the robustness of UTV Media.”

The company achieved cost savings of over £6 million in 2009 and reduced its debt by 18% (£19.1 million) during the year.

“I am particularly pleased that throughout the difficulties we have been able to significantly improve our capital position.  The reduction in net debt by 18% and cost savings ahead of target, mean that the company is in a strong position to tackle the new financial year,” McCann added.

“I am acutely aware that any recovery is very fragile, but I am pleased that we have seen some improvements in the advertising market so far this year.”