UTV revenues remain static
Group revenue at UTV Media remained broadly static in the 10 months to the end of October, the company said today.
In an interim statement, the group said revenue in its UK radio business, its largest division, rose by 5 per cent, led by TalkSport. UTV was also expecting a 2 per cent rise in GB radio revenue for the final two months in the year when compared with 2011.
The rise in revenue partially offset a 7 per cent decline in television revenue for the period. Its net advertising revenue for the Irish TV business slumped by 16 per cent as conditions remained difficult, and fall of 11 per cent was predicted for November and December.
UTV's Irish radio division maintained its revenue for the period, against the backdrop of a market that contracted by 8 per cent. But the translation from euro to sterling caused revenue to fall by 6 per cent. In the final two months of the year, revenue is predicted to fall by 5 per cent on a local currency basis.
“The headwinds to trading which we experienced in quarter three continue into the first weeks of quarter four, with macroeconomic conditions in the UK, to which advertising is so sensitive, still showing signs of volatility,” the company said.
“In Ireland, where we continue to outperform the radio advertising market, challenging conditions persist for both television and radio into quarter four, with further revenue declines anticipated.”
In the new media division, revenue was 5 per cent higher year on year, and declined 4 per cent when new acquisition Simply Zesty was taken out of the figures. Looking ahead to next year, UTV predicted improved performance for the division, partly thanks to recent restructuring in the division.
UTV continued to cut its net debt, which fell from £60 million to £53 million by the end of October, and predicted a continued decline in the figure.
“We remain cautious about the prospects for revenue growth across our key business divisions,” the company said. “Despite investment in future profit streams, we continue to keep a tight control over costs, the group remains cash generative with relatively low borrowings and is well positioned to take advantage of growth opportunities.”