Irish business weighs on UTV

Pretax profits at UTV Media rose last year, but revenue at its Irish radio business still declined.

According to the group’s preliminary results, the pretax profits at its ongoing business were up by 10 per cent to a record £23.3 million. Group revenue, meanwhile, was 2 per cent higher at £121.6 million, and operating profit rose 3 per cent to £26.8 million.

Revenues at UTV Media’s Irish radio division were 4 per cent lower, but still outperformed the market.

The company reported an impairment charge on Irish intangible assets of £45 million, with £19 million attributed to higher sovereign debt risk. UTV said the non-cash charge arose due to a downward revision of growth forecasts for the division and the use of a higher country specific discount rate for the Republic of Ireland.

Its British radio business saw growth of 6 per cent in revenue, despite the previous year’s bounce from the 2010 World Cup.

UTV said television revenue was up by 1 per cent., and net advertising revenue was in line with the ITV Network. The TV business accounted for 24 per cent of operating profit before exceptional items, with operating profit increasing by 18 per cent to £6.5 million.

Group chief executive John McCann said he was pleased with the company’s performance against a “testing” economic background.

“The strength of these numbers firmly reflects UTV’s commitment to deliver innovative programming across platforms, driving audience share while at the same time effectively managing costs within the business and paying down our debt facilities,” he said.

“We remain committed to our strategy of delivering value through the development of a diversified portfolio of leading media assets. I am confident this foundation will see the business continue to perform into 2012.”