Media group UTV said pretax profit rose 17 per cent to a record £21.1 million last year as revenue from its TV unit remained strong and its radio divisions in the UK and Ireland outperformed the market.
Revenue at the group, which owns Dublin stations Q102 and FM104 in addition to TalkSport Radio in the UK, rose 7 per cent last year to £120.2 million.
Operating profit for the group was 8 per cent higher at £25.9 million. The company also reduced its net debt by 34 per cent to £71.5 million over the 12 months.
"This debt reduction was achieved in the difficult economic circumstances of the past two years whilst maintaining a level of dividend payment to our shareholders," said chairman John McGuckian.
The radio businesses accounted for 72 per cent of the group's pre-exceptional operating profit in the year, rising by 12 per cent to £18.7 million, and 60 per cent of group turnover.
Revenue at its GB radio unit was strengthened by the World Cup and Premier League content, and recorded significant growth, UTV said.
UTV's Irish radio division put in a "robust" performance, the group said, despite challenging market conditions. It maintained operating profit at £7 million for the year as the company cut costs. Revenue fell 6 per cent to £23.4 million.
"Although turnover in our Irish radio division was down by 2 per cent at constant currency this was a significant outperformance of a total market which we estimate to be down by at least 10 per cent," Mr McGuckian said.
The group booked an impairment charge of £35 million on local radio licences, and exceptional items after tax of £24.8 million, compared to £2.4 million a year earlier.
Television revenue was also strong for the year, and operating profit was maintained at £5.3 million, supported by the World Cup
However, profit at UTV's new media division fell slightly to £1.9 million, from £2 million in 2009.
Looking ahead to 2011, Mr McGuckian said the group had a good start to the year, despite ongoing uncertainty in the economic climate.
Despite an anticipated contraction in the overall UK radio market's revenue of 6 per cent, UTV said it expected its radio division to record an increase of 3 per cent in revenue in the first four months of 2011.
"A similarly strong outperformance of the depressed Irish market by our Irish radio division is expected to maintain radio advertising in the four months to the end of April at the same level as last year against a market likely to be down at least 5 per cent," the company said.
The TV market is expected to continue growth, rising by 8 per cent.
The company said it expected its overall turnover in the first four months of 2011 to rise by 2 per cent. Mr McGuckian said such an increase would be "particularly encouraging" following 2010's record pretax profit.
"The fragility of both consumer confidence and economic recovery may lead to volatility in the advertising markets in which we operate, making it imprudent to forecast revenue for the year as a whole," he said.
"Nevertheless, the combination of the solid foundation of the first four months trading, strong audience delivery in each of our divisions and a continued focus on costs and cash provides some measure of confidence for 2011."
