Ulster Television has reported pre-tax profits of £20.4m sterling for the year ending December 31 2005. That is up 19% from the figure of £17.5m for 2004. Group revenues jumped by 46% to £92.7, up from £63.6m, after the £96.9m purchase of the Wireless Group.
The company said that its radio operating profits in Ireland rose by 56% to £3.8m after charging pre-operational expenses of £0.5m and operational losses of £0.2m for its new Belfast licence. Radio advertising in Ireland grew by 17% on a like for like basis.
Diluted earnings per share increased by 18% to 27.14 pence, up from 23.01 pence in 2004. A 10.7% increase in the final dividend is being proposed, making a total dividend for the year of 12.50 pence, up 8.7% from the 11.50 in 2004.
UTV said that operating profits at its television division was steady at £15.4m, while television advertising revenue fell by 3.8% which slightly underperformed the ITV Network. New media profits were also steady at £0.8m, while internet revenues grew by 54%.
Highlights of the year for the company included the purchase of LMFM, which broadcasts in the Dundalk and Drogheda areas, for £7.5m in February and the purchase of the Wireless Group in the UK for £96.9m in June. It also successfully launched the U105 radio station in Belfast last November.
'It has been another strong year for the group with solid performance across the business. The most significant event of the year was the acquisition of the former Wireless Group in June,' commented UTV's Group CEO John McCann. 'Its integration into UTV Radio is progressing well and it is enjoying buoyant advertising growth,' he added.
He said that although the UK radio market overall is experiencing adverse trading conditions, UTV owned stations are bucking the trend. It is forecasting growth of 9% for the first quarter of 2006 in the UK compared to an overall decline in the market of 11%. It is also expecting a 9% increase in the Irish market.
Mr McCann said the company's television operating profit had been flat for the year at £15.3m. First quarter revenues are expected to be down 8% year on year, which he said reflected a combination of a relatively weak market, declining advertising revenues at ITV1 and Easter being in the second quarter. However, UTV are forecasting a stronger second quarter in television, due to both the World Cup and Easter occurring during the period.
'Although I believe the advertising market will continue to be difficult over the coming months, I remain confident of UTV's ability to perform well in a tough market. Our recent acquisitions are performing strongly and we are well placed to benefit from the healthy Irish economy and the World Cup this summer,' Mr McCann said.
