UTV would welcome Carlton-Granada merger

Ulster Television indicated today it has nothing to fear from plans to merge larger operators Granada and Carlton and said advertising…

Ulster Television indicated today it has nothing to fear from plans to merge larger operators Granada and Carlton and said advertising revenue was recovering.

UTV chairman Mr John McGuckian told shareholders at the company's annual general meeting today the proposed merger would result in "a more cohesive and stronger ITV which is in the interests of viewers, advertisers and shareholders".

He said UTV was in talks with Granada and Carlton about network and sales arrangements following any tie-up between the two.

UTV outperformed the rest of the ITV network last year seeing advertising revenues rise by 4.7 per cent compared to a 1 per cent decline for ITV as a whole.

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Mr McGuckian said the firm had continued to outperform seeing advertising revenue grow 2 per cent in the first quarter of 2003 compared with a decline of 4 per cent across ITV.

He added that UTV's radio operations - which owns station in Dublin, Cork and Limerick - was experiencing strong revenue growth benefiting from its "quasi-national" proposition in the Republic.

Radio revenues are expected to show growth of 3 to 4 per cent in the first half.

Shares were up 8p at 284p after the update.

PA