UTV Media today posted a 17% rise in full-year adjusted pre-tax profits, boosted by growth in its radio and television revenue following a recovery in the UK advertising market.
The company also raised its final dividend to three pence, from two pence last year and said it had started the new year well.
UTV said its adjusted pre-tax profits came to £21.1m sterling for the year ended December 31, compared with £18.1m last year. Revenue rose 7% to £120.2m.
UTV Media said that its Radio Ireland division saw a 'robust performance' in challenging market conditions, with profits at £7m unchanged from 2009's outcome. In sterling terms, Irish radio revenue was down 6% to £23.4m.
'The market in which our Irish radio stations operate was extremely difficult, but this was mitigated by our ability to offer national advertisers a package comprising our leading stations in key urban areas,' the company said.
UTV said its television advertising market saw a 'good recovery' in 2010 with the World Cup providing an additonal stimulus. But weakness in its ad revenues from Ireland resulted in UTV's television revenue underperforming that of the ITV network by 11 percentage points in the first half of the year. But that gap closed in the second half when it outperformed the network by three percentage points.
For all of 2011, television advertising revenue was up 11%, helping to lift total TV turnover to €36.7m, while operating profits were flat at €5.3m due to World Cup rights and production costs.
The company said that the new year has started well for the group despite the prevailing economic uncertainty. It said it expects turnover in the first four months of 2011 to be up by 2%. It said this would be particularly encouraging after a year of record pre-tax profits.
'The fragility of both consumer confidence and economic recovery may lead to volatility in the advertising markets in which we operate, making it imprudent to forecast revenue for the year as a whole,' said UTV chairman John McGuckian.
'Nevertheless, the combination of the solid foundation of the first four months trading, strong audience delivery in each of our divisions and a continued focus on costs and cash provides some measure of confidence for 2011,' he added.
