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15 Nov 2012 07:00
UTV Media plc - Interim Management Statement
This Interim Management Statement covers the period from the beginning of the Group's current financial year, 1 January 2012 to the date of this announcement and incorporates the Group's ten month trading period ended 31 October 2012.
10 Months to end October 2012 2011 % Change £m £m Group Revenue 99.5 99.8 - Radio GB 46.0 43.6 5 Radio Ireland 17.0 18.2 (6) Television 26.5 28.5 (7) New Media 10.0 9.5 5 * talkSPORT to broadcast exclusive UK radio commentary of 2013 Rugby Lions Tour * talkSPORT becomes Global Audio Partner of the Barclays Premier League through to 2016 * talkSPORT signs worldwide commercial radio rights to FA Cup and Capital One Cup through to 2018 and 2016 respectively * Successful re-financing of banking facilities and continued reduction of debt * New network affiliate agreement with ITV * Acquisition of Simply Zesty - Ireland's leading social media agency
Radio GB
In our largest division, revenue over the period increased by 5% with talkSPORT growing by 8% and our Local Radio business by 1%. The UK radio market increased by 4% over the same period. We anticipate that our revenue in November and December will be 2% above last year. As the start-up costs of the talkSPORT International project have been largely incurred by Tibus and Simply Zesty these costs will not be treated as exceptional by the Group.
Radio Ireland
In local currency terms Radio Ireland maintained its revenue over the period, significantly outperforming the Irish radio market which is estimated to have declined by 8% over the same period. Currency translation losses, however, led to a 6% deduction in reported revenue. It is anticipated that revenue performance in November and December will be down by 5% compared to last year on a local currency basis.
Television
Total revenue for the period decreased by 7% with Net Advertising Revenue (NAR) down by the same amount. Our London NAR declined by 1% which was in line with the UK TV broadcast market. NAR generated by our Irish offices experienced a decline of 16%. NAR for November and December overall is expected to be down by 11% compared to the same period in 2011 due to continued difficult trading conditions in Ireland.
New Media
Revenue increased by 5% compared to the same period in 2011. Excluding Simply Zesty, the like for like decline in sales for the period to October was 4%. Revenue in November and December is expected to maintain the same rate of growth as the first ten months. We expect that recent restructuring within New Media, coupled with the absence of large internal projects next year, will result in an improved performance in 2013.
Net Debt
We continue to place a strong emphasis on cash generation and debt management. Our Net Debt at 30 September 2012 was £53m (£60m at 30 September 2011) and we anticipate that it will reduce further by 31 December 2012.
Outlook
The headwinds to trading which we experienced in Quarter 3 continue into the first weeks of Quarter 4, with macroeconomic conditions in the UK, to which advertising is so sensitive, still showing signs of volatility. In Ireland, where we continue to outperform the radio advertising market, challenging conditions persist for both television and radio into Quarter 4, with further revenue declines anticipated.
On a positive note, our GB Radio operations continue to deliver a strong performance overall, and we anticipate a stable outlook for GB Radio across Quarter 4. Outside of the UK, talkSPORT International is building both audiences and revenues in line with expectations several months into the project.
With limited visibility, we remain cautious about the prospects for revenue growth across our key business divisions. Despite investment in future profit streams, we continue to keep a tight control over costs, the Group remains cash generative with relatively low borrowings and is well positioned to take advantage of growth opportunities.
UTV's next scheduled announcement of financial information will be the release of our preliminary results (to 31 December 2012) which is provisionally scheduled for 19 March 2013.
Investor Enquiries www.utvmedia.com/investors John McCann, Group CEO +44 (0) 28 9026 2202 Norman McKeown, Group Finance Director +44 (0) 28 9026 2098 Media Enquiries
Orla McKibbin, Head of Communications +44 (0) 28 9026 2188 / +44 (0) 7879 666
427 Maitland Tom Buchanan / Rowan Brown +44 (0) 20 7379 5151 About UTV
UTV Media plc is one of the most successful media companies in the UK and Ireland incorporating Radio, Television, New Media and Publishing. UTV Radio GB operates the no. 1 commercial national speech station - talkSPORT, 13 Independent Local Radio Stations (ILRs) and a number of digital radio multiplexes throughout GB. talkSPORT is Global Audio Partner of the Barclays Premier League through to 2016 and also incorporates Sport magazine. UTV Radio Ireland is the largest operator of ILRs in Ireland. UTV Television is the ITV franchise holder for Northern Ireland and has the highest TV penetration locally. UTV New Media comprises a leading Internet Service Provider, web development company and full service digital agency.
Forward Looking Statements
Figures presented in this interim management statement are not audited. This announcement contains certain forward-looking statements with regards to the financial condition and results of the operations of UTV Media plc. These statements and forecasts involve risk factors which are associated with, but are not exclusive to, the economic and business circumstances occurring from time to time in the countries and sectors in which the group operates. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Other than required by law, UTV Media plc undertakes no obligation to update the forward-looking statements.
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