UTV has reported a 46 per cent rise in pretax profits for 2004 as the advertising market stages a strong recovery.

The company, which has interests in television, radio and internet, increased pretax profits to £13.9 million (€20.1 million)from £9.5 million the year before. Group turnover was up 18 per cent at £63.5 million compared with £54 million in 2003.

Television advertising was up by 16 per cent, radio advertising was up by 8 per cent, while advertising from the internet rose by 46 per cent.

The company's television interests continued to be the main driver of the figures. Television operating profit was up 29 per cent at £15.2 million, with radio operating profits unchanged at £2.5 million.

The strong recovery in advertising was set to continue, the company emphasised, with ad revenues expected to rise by 5 per cent in the first quarter. Radio advertising revenues are expected to be 20 per cent up in the first quarter of 2005.

Chairman John McGuckian said the company's Dublin station Q102 had made a strong recovery.

"The radio market remains very short term but with the Irish economy continuing to grow, further strong growth should be achievable. Q102 is expected to move into profit this year which should give a significant boost to the overall profits of the radio division," he said.

"Further improvement can be expected also from the integration of our latest radio acquisition LMFM which will be earnings enhancing for the year as a whole".

In February the company bought LMFM , which broadcasts into Louth and Meath, for £6.7 million. However, further expansion is not likely in the radio sector.

This is because the Broadcasting Commission of Ireland (BCI) will not allow any one company to own more than 17.9 per cent of all sound broadcasting services. This cap is in place until a full BCI review takes place.

He said the broadband and telcoms businesses of UTV were enjoying substantial growth, with turnover expected to rise by 25 per cent from what he called the "new media division".