UTV Media scored a hat-trick of interim goals thanks to the World Cup which delivered improved revenues, operating profit and pre-tax profit for the Northern Ireland group in the first half of the year.
The Belfast-based media organisation, which operates the ITV television franchise in Northern Ireland, said that the global football event and an “improving economic environment” had helped it deliver a stronger trading performance.
UTV, which owns more than 14 radio stations in the UK and a stable of six Irish radio stations, said overall group revenue in the six months to June had increased by 9 per cent to £59.2 million (€71.51 million).
The group’s operating profit in the same period also grew by 9 per cent to £12.2 million, while pre-tax profits enjoyed a healthy 17 per cent rise to £9.4 million.
UTV Media’s net debt was reduced down to £77.3 million in the first half of the year – £18.4 million less when compared to the corresponding period last year.
Against the backdrop of an “improved trading position” the board of UTV has reinstated an interim dividend of 1.00 pence.
The key driver behind UTV Media’s improved trading performance was the contribution from its radio division, where operating profit improved by 17 per cent to £9.8 million.
Its GB radio portfolio alone grew its turnover by 22 per cent to £25.1 million.
The company said the World Cup helped to lift revenue at its talkSport radio division, aimed at “men who like to talk sport”, by 23 per cent to £12.6 million.
In contrast, revenue from its local GB radio operations was unchanged at £10.3 million, while the performance of its Irish radio division failed to inspire.
The Belfast media group said the significant decline in advertising revenue which the Irish operations had suffered in 2009 had moderated in the first six months of the year.
“Movement in foreign exchange brought a further 3 per cent reduction resulting in revenue being down at £11.5 million (2009: £12.3 million) for the first half.”
UTV said the drop in revenue was mitigated by cost savings of £400,000, which resulted in an overall operating profit of £3.2 million for Irish radio.
Thanks to the World Cup effect television advertising revenue was up 7 per cent to £15 million, while total revenue in the six months to June grew to £17 million.
However, network programme costs and higher commissioning costs drove specific television operating profit down to £1.4 million.
John B McGuckian, chairman of UTV Media, believes that much of the “difficult work to prepare the group for the recession is bearing fruit”.
