Revenue at UTV Media’s Irish radio division turned positive in the first fourth months of the year, but foreign exchange movements had a negative impact on figures, the group said today.
Overall group revenue rose by 2 per cent compared with the same period in 2011, and UTV predicted a strong lift in turnover from the Olympics, due to be held in London this summer, with further benefits from the recently announced affiliate relationship with ITV, its social media agency acquisition and the establishment of radio station TalkSport worldwide.
Although revenue in UTV’s Irish unit rose by 1 per cent as measured in local currency and was expected to continue to rise in May and June, the impact of foreign exchange movements turned that gain to a decline of 2 per cent. A like for like revenue rise of 3 per cent in May and June was expected to turn to a decline of 5 per cent for the same reason.
Revenue in the group’s Radio GB division was 8 per cent higher in the four months to the end of April, outpacing the general UK radio market.
Within that division, TalkSport revenue was 16 per cent higher over the same period.
The group said it was expecting the UEFA Euro 2012 event and the upcoming Olympics to boost that growth to 20 per cent in May and June.
Elsewhere in the group, national ad revenue in its television operations was 6 per cent lower over the four month period, and total revenue was 4 per cent lower.
UTV predicted growth of 2 per cent in its ad revenue for the two-month period of May and June, with total revenue expected to rise by 3 per cent.
In the new media division, revenue was 3 per cent higher than a year earlier, with a 15 per cent increase expected for May and June.
“This will largely reflect the impact of Simply Zesty, the social media agency acquired in March 2012,” UTV said in a statement.
UTV said trading in the first half of the year was in line with expectations.
“Continuing economic uncertainty, however, means airtime bookings remain short term and forward visibility is limited,” it said. “We therefore remain cautious about the remainder of the year but believe we will continue to deliver on market expectations.”
