Media firm UTV has reported pre-tax profits, before exceptional items, of £7.8m sterling for the six months to the end of June 2009. This is down from the figure of £11.2m the same time last year as advertising revenues continued to decline in what the company called a challenging six months.
UTV said its group turnover decreased by 10% to £54.5m from £60.9m, while group operating profit fell to £11m from £15.4m.
The group said that over the last six months, it has actively sought to reduce costs and reduce its debts. 'Both have been successful and have gone some way to moderate the impact of unprecedented advertising markets,' it said.
'It is difficult to give a detailed outlook because of continuing macroeconomic uncertainty, nonetheless we are expecting the rate of decline in advertising to slow as comparatives ease over the coming months,' commented UTV's Group CEO John McCann.
UTV said that total revenues from its radio operations were down by £2.1m to £33.1m, with operating profits falling by £1.6m to £8.2m.
Its Irish radio division increased revenues by 8% to £12.3m, with the inclusion of FM104 for the full six months accounting for a 17% uplift and sterling exchange rates adding 12%.
However, on a like-for-like basis, Irish radio revenue fell by 21% with the second quarter decline worse than had been expected. Profits at the division were maintained at £3.6m.
Its UK radio division reported an improving performance, with a 16% decline in revenue in the first quarter moving back to an 11% decline in the second quarter.
UTV said that after an 18% fall in the first quarter, television advertising revenue fell more sharply in the second quarter. This resulted in a 23% reduction to £14m for the six month period.
TV ad revenues from Ireland slumped by 40% in the half year period, mainly as a result of reduced revenues from multinational customers. TV advertising revenue from the Northern Ireland market was 'relatively resilient', seeing only a 6% decline. UK ad revenues were in line with the market, the company added.
Its new media revenues - broadband and telephone services and Tibus - rose by 1% to £5.9m while operating profits rose by 9% to £1m.
UTV said the task of providing guidance about future trading has 'never been more difficult'. However, it added that it expects that as the comparative numbers become softer, the rate of decline in advertising revenues will slow.
It predicts that Irish radio revenues will be down another 20% in the third quarter, while television ad revenues should be down by 16% in the three months to the end of September.
'Thereafter, in both television and radio, the advertising market will be responsive to the changing macroeconomic situation, with any improvement in the latter being rewarded with enhanced demand in the former,' commented UTV Chairman John McGuckian.
