Ulster Television has reported a 24 per cent increase in group operating profit to £6.7 million sterling (€11 million) for the six months to the end of June. Profits at the core television business rose 33 per cent to £7.2 million but were offset by losses at the group's Internet business, UTV Online, set up this year.

The Internet service provider lost £342,000 during its first four months, but the company says it will reach its target of 60,000 subscribers in its first year.

Turnover at the group rose 11 per cent to £20.4 million and earnings per share rose by 23 per cent to 8.9p. An interim dividend of 3.6p has been declared, compared to 3.1p last year.

Television advertising revenues (97 per cent of group turnover) remain buoyant, according to Mr John McCann, group managing director.

Although the ITV network predicts advertising sales will fall later in the year, UTV expects to be insulated from the downturn. "We did not get that many ads from dot.com companies and the Irish part of our advertising base continues to grow," he said.

UTV will continue to look for investment opportunities outside its core television business, in Ireland and internationally, he said. Granada's recent purchase of a 45 per cent stake in TV3, the independent station based in Dublin, has no obvious consequences for UTV, said Mr McCann. CanWest, the Canadian media group which owns a little less than 30 per cent of UTV, also has a 45 per cent stake in TV3.

"It is for CanWest and Granada to decide how that develops," he said.

UTV Internet, the former Direct Net Acess, was bought for £4.4 million this year. It is aimed at customers throughout Ireland, but several business propositions are being developed for launch later this year, said Mr McCann.