Shares in Ulster Television surge after strong set of annual results

Ulster Television shares have risen sharply after the group reported strong 2000 results and gave what one analyst described …

Ulster Television shares have risen sharply after the group reported strong 2000 results and gave what one analyst described as a "cautiously positive" comment on current trading. The shares, which have weakened in recent weeks in line with the market, regained 34p yesterday to close at 293p sterling (468 cents).

UTV's results are complicated by various exceptional profits and restructuring charges in both 1999 and 2000, but adjusted earnings per share were up 14 per cent to 18.34p sterling.

At the pre-tax level, profits of £27 million sterling included an exceptional gain of £13.4 million on the sale of UTV's stake in satellite group SES. The 1999 profits of £7.8 million include a £4.8 million restructuring charge. When these exceptionals are stripped out, adjusted pretax profits rose from £12.6 million to £13.6 million.

UTV chief executive Mr John McCann said that while it had not benefited from the dot.com advertising boom in the first half of the year as other ITV companies had, "we have been less affected by the much-publicised drop-off in advertising experienced by some companies in the second half." Overall, UTV increased its advertising revenues by 6.2 per cent, compared to the ITV average of 5 per cent.

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He added that UTV has benefited from having three advertising markets in Belfast, London and Dublin which tends to moderate the peaks and troughs associated with a single advertising market. "The combination of market diversity and excellent ratings will ensure that we are able to maximise revenue opportunities," he said. He said that UTV is the North's most popular channel and is second only to RTE 1 in multichannel areas.

Mr McCann confirmed that UTV plans to buy out the remaining 40 per cent of Cork radio group County Media "as the regulatory environment permits." The IRTC vetoed UTV's plans to acquire 100 per cent of County Media but did allow it buy 60 per cent of the company for £17.1 million.

The group's UTV Internet business had losses last year of £1.3 million but UTV still aims to bring the Internet business into profitability in the second half of the current year. UTV aims to expand the subsidiary's customer base and once the County Media takeover is completed intends to introduce services aimed directly at users in the Munster region.