LONDON (Alliance News) - UTV Media PLC said Thursday that although it saw revenue rise 9% in its first nine months, this has slowed to 3% in its fourth quarter so far, as the strength of sterling and lower government television advertising in Northern Ireland held back growth.
The broadcaster noted that continuing uncertainty around budgetary constraints in the Northern Ireland Assembly will hinder television advertising in the early part of 2015.
In the nine months to end-September, UTV saw total revenue up 9% to GBP84.7 million from GBP77.4 million a year before, buoyed by more positive economic conditions in the UK and Ireland and the 2014 FIFA World Cup offsetting the strength of sterling.
This allowed the company to reduce its net debt by GBP3.2 million to GBP45.9 million, which it said provides it with a foundation for funding the pre-start up costs of its new television station UTV Ireland.
In its television segment, revenues were up 6%, with London net advertising revenues up 6% and Irish net advertising revenues up 4%. UTV expects television revenues to rise 4% in the fourth quarter, with its Tibus and Simply Zesty businesses growing 31%.
In its Radio Great Britain segment, revenue was up 15% in the nine months as the World Cup boosted its talkSPORT's business by 23%. Revenue from local radio stations rose 2%, under-performing market growth of 3%. The company expects revenue growth from this segment to slow to 7% in this segment in its fourth quarter.
Radio Ireland revenue rose 6% at constant currency, however only 2% at actual exchange rates. For the fourth quarter, UTV expects this segment to decline 1% at constant currency, and 7% at actual exchange rates due to the strength of sterling.
The company said its main focus remains the launch of UTV Ireland in January 2015, and said that plans are "well advanced", with staff appointed, programmes commissioned and its Dublin studio now ready.
Shares in UTV Media are trading down 4.8% at 200.00 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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