UTV's Irish radio profit surges to #3.84m

UTV made an operating profit of £3.84 million (€5.57 million) on its Irish radio operations in 2005, the media group said yesterday.

This compared with a £2.46 million profit the previous year. During the year the group acquired LMFM, the radio station operating in counties Louth and Meath, and launched a new Belfast station, Q105. Overall the group made a pretax profit, before exceptional items, of £20.8 million, a 19 per cent increase on the previous year.

Turnover in its Irish radio operations increased to £14 million from £10.46 million. Group finance director Jim Downey said its Irish radio listenership figures meant they were now second to RTÉ's Radio One.

"Our strategy is now really coming together, to buy into big urban environments and then bring them together as an advertisement sales proposition," he said.

Mr Downey said the Irish radio business enjoyed a 17 per cent like-for-like increase in 2005. He said the group was in the marketplace for new acquisitions that fitted its strategy. The opening of its Belfast station in November 2005 meant it was now offering an all-Ireland product.

Mr Downey said he did not disagree with media reports that TV3 was worth between €200 million and €300 million, though he would not say how much UTV had bid for CanWest's 45 per cent stake.

He thought the most logical outcome was that ITV would invoke its pre-emption right to buy the stake if the price was right. If it was not interested, he believed whoever bought the CanWest stake would buy the rest of the station from ITV.

Mr Downey said UTV's UK and Irish radio operations were now the biggest part of its operations.

Operating profits from its television division remained flat, at £15.4 million. There was a drop in revenue of 3.8 per cent, to £46.36 million. The difficult television advertising marketplace was cited by the group.

"First quarter revenues [ in 2006] are expected to be down 8 per cent on the year, reflecting a combination of a relatively weak market, declining advertising revenue at ITV1, and Easter being in the second quarter," said John McCann, group chief executive.

"However we are forecasting a stronger second quarter in television, due to both the World Cup and Easter occurring during the period."

He said he believed the advertising market would remain difficult over the coming months.

In its Irish radio operations, the group is predicting an increase of approximately 9 per cent in its advertising revenues in the first quarter of 2006.

Turnover in its new media division increased by 54 per cent to £8.1 million. Operating profits were static at £800,000. Operating profits from UK radio were £4 million.

UTV owns Q102 in Dublin, 96FM in Cork, 103FM in Cork, Live 95FM in Limerick, LMFM, and U105.

Its radio advertising sales house also sells advertising on Galway Bay FM and Beat FM, which is available in the southeast.