UTV "gives away" £10.5

THE so-called peace dividend in Northern Ireland is a handy catchphrase, commonly used to describe the general economic benefits…

THE so-called peace dividend in Northern Ireland is a handy catchphrase, commonly used to describe the general economic benefits stemming from the cessation of violence.

This week a more specific peace dividend dropped into the laps of fortunate shareholders in Ulster Television with a special £10.5 million sterling payment from reserves.

Last year pre tax profits jumped 9.5 per cent to a record £8.2 million, growth attributed to a 10 per cent increase in advertising revenue to £33 million. Heavy spending by the British government on its lavish "Days Like These" peace campaign enhanced strong revenue flows from more conventional commercial sources.

UTV chairman John McGuckian said such exceptional spending by the government was unlikely to be maintained, with advertising revenue expected to be somewhat lower in the current year. Overall, UTV's turnover - rose 8.8 per cent to £34.5 million, producing operating profits of £6.4 million.

READ MORE

The broadcaster is cash rich with £20.5 million in reserves, a pool which will be halved by the special bonus for its 16,000 mostly institutional shareholders. The payment is in addition to the conventional total dividend which is pitched at 22.5p a share.