Ulster Television suffered a £1 million sterling (€1.59 million) fall in advertising and sponsorship income in the first six months of the year. The Belfast-based television, radio and internet group, said yesterday that profits for the six months to June rose modestly by £30,000 to £6.9 million despite the 4.9 per cent fall in, advertising and sponsorship revenue to £18.80 million.
Mr John McCann, managing director of UTV, said the company had outperformed comparable regional television companies to win an increased 2.13 per cent share of total independent television advertising revenue.
"The impact of the UK advertising downturn has been mitigated by this network's out-performance; the contribution from our recent acquisition of County Media in Cork; and continued cost control," Mr McCann said yesterday.
He said the group expected to continue to outperform the ITV network advertising average and planned to end the year with an improved share of revenue.
Mr McCann said UTV group turnover had increased by 2 per cent to £20.85 million compared to £19.77 million in the comparable six-month period last year.
"Despite positive market conditions in Ireland we are not immune to a reduction in national advertising budgets in ITV.
"In the context of an estimated 15 per cent downturn in total ITV advertising, UTV's advertising income has decreased by less than one third of that," he added.
Shareholders will receive a 5.6 per cent increase in the interim dividend to 3.80 pence. Earnings per share were up 1.4 per cent to 9.3p.
According to Mr McCann one of the highlights of the last six months has been the performance of radio group County Media, in which UTV took a 60 per cent stake last April.
"County Media's three radio stations in Cork City and County continue to enjoy a commanding share of listenership in the region," he said. The acquisition made an operating profit of £490,000 on a turnover of £1.29 million.
The group's internet division, he said, also performed well. The division made an operating loss of £0.38 million in the six-month period compared to a loss of £0.34 million in the four-month period last year.
"UTV internet increased its total subscriber base by over 25 per cent in the first six months of this year and we are still on target to move into profit in the second half," he said.
