Revenue at UTV Media falls 8%

Overall revenue at UTV Media fell 8 per cent over the 10 months to October 31st, as weak television and radio sales in Ireland weighed on the company, the company said today.

The interim statement from UTV, which owns more than 20 radio stations in Britain and Ireland, showed revenue in the group's television division declined 21 per cent compared to the previous year. Sales from Ireland were down by 25 per cent, the group said.

However, revenue in the last two months is expected to show some recovery, at 10 per cent down for November and 3 per cent down for December.

The Irish radio division, which includes Dublin's FM104, Cork's 96FM and Belfast's U105, grew revenue by 1 per cent over the 10-month period. However, this was supported by the acquisition of FM104, which contributed 9 per cent, and the gains from the sterling translation exchange, which accounted for 11 per cent. UTV Media bought FM104 in 2008.

Excluding these two factors, the like for like decline in sales was 19 per cent.

UTV Media said the rate of decline was showing some evidence of slowing, and revenue in November and December is expected to be down on a like for like basis by 8 per cent in both months.

In the company's British radio division, revenue fell 10 per cent. Revenue is expected to be down 3 per cent in November and 1 per cent in December in line with improved market conditions.

The group's new media revenue, meanwhile, grew 1 per cent and is expected to continue with this trend in November and December.

The firm said it expects operating profit for 2009 to be "broadly in line" with analysts' estimates.

"Although the difficult economic environment continues to impact upon advertising revenue, the rate of decline is easing in all of our markets. With substantial cost cuts having been achieved, we expect operating profits for
2009 to be broadly in line with consensus expectations," the statement said.