Revenue at UTV drops by 14%

REVENUES AT broadcaster UTV were down 14 per cent on a like-for-like basis in the first four months of the year, the company said yesterday.

UTV Media released an interim management statement yesterday saying the group’s revenues in the four months to April 30th fell 9 per cent on the same period last year.

However, it said that, stripping out the contribution from Dublin local radio station FM104 and Co Down-based new media business Tibus, which UTV bought last year, the like-for-like fall in sales was 14 per cent.

The company operates the independent television franchise in the North and has radio interests in Ireland and Britain. It depends on advertising in these media for much of its income.

Revenues in its television business are expected to fall 20 per cent by the end of June. In the first four months of the year, they were down 19 per cent. Sales in the company’s Irish radio business were down 17 per cent and UTV said yesterday it expected this trend to continue in May and June.

“Our radio Ireland division grew revenue by 25 per cent in the period to April 30th compared to last year, with the FM104 acquisition accounting for 28 per cent of this and sterling translation gains explaining 14 per cent,” its statement said.

“The like-for-like decline in sales was therefore 17 per cent.”

New media grew 2 per cent; the Tibus acquisition, made in February last year, accounted for 7 per cent. Sales in the next two months are expected to be in line with last year.

Debts at the start of the year came to £108.4 million (€122 million) and this has fallen in line with expectations. “We remain cautious about trading prospects for the year but our costcutting measures are having a positive impact,” UTV said.