UTV said it expects this summer's football World Cup to boost radio advertising revenue and help offset a decline in television income.
Following a 13 per cent gain in first-quarter radio advertising revenue from the group's British channels, UTV chairman John McGuckian said yesterday he expected this income stream to increase by 15 per cent in the first six months of the year, boosted by particularly strong football-related advertising on its TalkSport station.
This compares with a 2 per cent fall forecast for the overall market in the same period.
Addressing shareholders at the group's annual general meeting yesterday, Mr McGuckian said substantial outperformance was also being achieved at the group's Irish radio division, with like-for-like advertising revenue also expected to increase by 15 per cent in the first half. In Ireland the company owns Q102 in Dublin, 96FM and 103FM in Cork, Live 95FM in Limerick, LMFM, and U105.
Mr McGuckian said the particularly favourable economic conditions in the Republic should help maintain the momentum of growth into the second six months of the year.
"The year to date is again characterised by outperformance," he told shareholders. "This outperformance, particularly in radio, should mitigate the generally difficult trading conditions in advertising and help to sustain further progress in the current year."
He said the performance of the group's television activities continued to be affected by the poor advertising market and that the expected stimulus of the World Cup had not materialised.
UTV, which is part of the ITV network and owns the franchise in Northern Ireland, expects television advertising revenue to decline by 6 per cent in the first half. However, revenue from the group's internet division is expected to increase by 16 per cent in the same period, driven by higher demand for its broadband and telephony products.
UTV last year saw turnover from its Irish radio operations rise by 34 per cent to €20 million.