WLG.L Regulatory News (WLG)

7 Dec 2005 07:00

7 December 2005Ulster Television plcUpdate re trading and integration of UTV Radio (formerly the Wireless Group)On 6 June 2005, UTV took operational control of the Wireless Group, which ithad acquired for ‚£97m, and which comprises one UK national talk station(talkSPORT) and 16 independent local radio stations. Given the scale of thistransaction, the purpose of this release is to inform the market of theprogress which has been made in the six months to date. * Senior Management changes have been implemented and a new team, under the leadership of one of UTV's existing executives, Scott Taunton, is now in place at the re-named UTV Radio. * Cost synergies have been instituted to achieve the estimated savings of ‚£ 1.5m net in the first full calendar year of ownership. * First Radio Sales Ltd, our joint venture sales house with the Local Radio Company, is now selling the national airtime for our local radio stations which together with its existing client base now totals 117 local stations across the U.K. * The financial reporting systems and internal controls of UTV Radio are fully aligned and integrated with those in the rest of The UTV Group. * In the six month period to 31 December 2005, revenue at UTV Radio is expected to be up by approximately 5%, which should comfortably outperform the radio advertising market in Great Britain. In our other divisions, trading in the second half of 2005 is broadly in linewith expectations. The television advertising marketplace remains difficultand revenue from this source is expected to be down by about 3.5% in the sixmonths to 31 December 2005, although cost savings will mitigate thisreduction. Advertising revenue in our Irish radio stations continues to enjoygood growth and should be up by approximately 16% in the second half. In 2005we expect to write off costs of about ‚£0.6m, including pre-operationalexpenditure of ‚£0.4m, in our new radio station in Belfast, which launchedsuccessfully on 14 November 2005. Strong revenue growth of at least 50% shouldbe achievable in our new media division in the second half of the current year.John McCann, Group Chief Executive, said: "We are very pleased with theperformance of UTV Radio, especially talkSPORT where revenues are well ahead oflast year. With the football World Cup in 2006, we anticipate continued growthat UTV Radio and we look forward to the launch of Talk 107 in Edinburgh on 14February."For further information contact:Ulster Television plcJohn McCann, Group Chief Executive +44 28 9026 2202Jim Downey, Group Finance Director +44 28 9026 2176Scott Taunton, Managing Director, UTV Radio +44 20 7959 7851Orla McKibbin, Head of Press and PR +44 28 9026 2188Powerscourt +44 20 7236 5615Rory Godson +44 7909 926 020Anthony Silverman +44 7818 036 579ENDULSTER TELEVISION PLC