UTV Media, Northern Ireland’s biggest broadcaster, said first-half pre-exceptional operating profit fell 29 per cent during a “challenging” six months.
Pre-exceptional profit dropped to £11 million from £15.4 million a year earlier on a slump in advertising revenue, Belfast, Northern Ireland-based UTV said.
UTV won’t pay an interim dividend because of “uncertainty as to the depth and duration of the recession.”
“This has undoubtedly been a challenging six months,” John McCann, chief executive officer, said in today’s statement. “Nonetheless we are expecting the rate of decline in advertising to slow as comparatives ease over the coming months.” The rate of decline in advertising revenue “will slow,” UTV said.
Advertisers are cutting budgets as the UK economy battles a recession, putting pressure on media companies. Last year UTV announced job losses and plans to cut costs by £5 million.
First half revenue fell 10.5 per cent to £54.5 million, UTV said. Operating profit at UTV’s television unit fell by 61 per cent in the first half while radio revenue fell 16 per cent.
Net income plunged 45 per cent to £4.2 million from a year earlier.
Bloomberg