Sign In
25 May 2007 12:01
Embargoed until 12 noon 25 May 2007
UTV plc Chairman's AGM Statement
UTV Chairman, John B. McGuckian gave the following trading update at the annual general meeting of UTV plc today.
"Your company's diversification into radio passed an important milestone in 2006 with radio revenues at 54% of total group revenue for the first time overtaking television revenue at 37%. UTV Radio is now a significant player in both Ireland and Great Britain and the development of this part of our business continues to be a key focus of our corporate strategy.
"Operating profits for 2006 were broadly flat at ‚£24.8m with increased profits from our continuing radio operations being offset by reduced revenue in our television division and start-up losses at our new radio stations in Edinburgh and Belfast. We again outperformed our peer groups in 2006 and this outperformance has continued into 2007.
In the first six months of the current year, the UK radio market is expected to decline by 2% while our GB radio revenue is forecast to be broadly flat. talkSPORT is expected to be up by 1.0% which, given the very strong comparative of the World Cup period in 2006, is a particularly good performance.
"A marked outperformance in television is also evident, with our television division expected to record a 1% reduction in first half revenue compared to an anticipated decline of c. 10% for the ITV1 network. This would lead to a record share of about 3%.
"Our Irish radio division is also expected to record revenue growth in the six months to 30 June 2007, but a 2% improvement is lower than we had forecast previously. Strong national sales growth is being tempered by what we believe to be a short term weakness in local sales.
"Our new media division is forecast to deliver revenue growth of 15% in the first half. We expect to complete our strategic review of this division by the end of the second quarter.
"Overall, your company mitigated the effects of the significant decline in television in 2006 and, through outperformance in both that division and in radio, continues to progress well in difficult market conditions. This outperformance leaves us well-placed to take advantage of any improvement in the market."
For further information:
Powerscourt Media +44 20 7250 1446
Rory Godson +44 20 7324 0491
Sarah Daly +44 20 7324 0499
UTV plc
John McCann, Group Chief Executive +44 28 9026 2202
Paul O'Brien, Group Financial Director +44 28 9026 2098
Orla McKibbin, Head of Press and PR +44 28 9026 2188
UTV PLC
Follow the stocks
