The Ulster Television media group has reported a 3.7 per cent rise in pre-tax profits to £13.9 million sterling (€20.4 million) in 2002 and has said that despite current uncertainties it is optimistic about its prospects.

Announcing the full-year out-turn yesterday, UTV group chief executive Mr John McCann said UTV was expecting a 2 per cent increase in advertising revenue in the first quarter of 2003 and to improve its market share over the coming months.

He added the company had made excellent progress during 2002 particularly given softening of advertising revenues across the sector.

"Our television revenues significantly outperformed the ITV network for the third successive year. Our advertising revenue increased by 4.7 per cent to £37.8 million, giving us a record share of the ITV market."

The group recorded an 8 per cent rise in operating profit to £14.6 million.

Operating profits at its television division fell from £12.4 million to £12.3 million with the station blaming higher programme costs for the downturn.

The contribution from its radio stations was stronger with operating profits up from £1.4 million to £2 million during last year.

The group operates the 96FM and 103FM stations in Cork, and acquired two further stations in Limerick and in Dublin in 2002. Live95FM in Limerick was purchased in June 2002 and its half-year contribution is included in these figures. Last December UTV purchased Dublin station Lite FM.

Mr McCann said Lite FM had build up a creditable position and was now only a few percentage points behind the independent commercial radio leaders. Total listenership at the Limerick and Cork stations has also risen. Mr McCann added that UTV intended to continue to expand in this sector this year.

Its internet business also moved into the black with the group reporting operating profits of £300,000 compared to a loss of £200,000 in the previous year.

It said this had been achieved through the development of a range of new products both in Northern Ireland and in the Republic including broadband.

At the end of 2002 UTV had net debt of £27.4 million, up from £10.7 million in 2001 primarily due to acquisitions.

It has recommended a final dividend of 5.65p for shareholders bringing the total for the year to 9.6p.