UTV sees pre-tax profits fall 30%

UTV Media, owner of talkSPORT and the Northern Ireland ITV franchise, saw pre-tax profits fall 30% to £7.8 million in the first half of the year.

Group operating profit fell 29% to £11 million, with total group revenue falling 10% to £54.5 million.

The company’s TV division suffered a 61% fall in operating profits to £4.7 million, with TV ad revenue down 23% in the half to £14 million. However, it said that the overall rate of decline for TV ad revenue is slowing , with a 16% year on year fall predicted for Q3.

Its GB Radio division, which includes talkSPORT, saw ad revenue dip 13% to £20.8 million, with operating profits down 26% to £4.6 million.

John McCann, UTV Media group chief executive, said: “This has undoubtedly been a challenging six months. However, our results demonstrate the resilience of the business.

“Over the last six months we have actively sought to reduce costs and reduce our debt. Both have been successful and have gone some way to moderate the impact of unprecedented advertising markets.

“It is difficult to give a detailed outlook because of continuing macroeconomic uncertainty. Nonetheless, we are expecting the rate of decline in advertising to slow as comparatives ease over the coming months.”