UTV has pinpointed a number of specific radio acquisition targets in the Republic. The group's managing director, Mr John McCann, said yesterday that UTV had "specific radio assets in mind", but declined to identify or put a timeframe on any deals under consideration.
He added that, while UTV's immediate growth prospects remain in radio, other media in the Republic, such as newspapers, could also be considered under the right circumstances. "If we saw an opportunity, we wouldn't rule it out," he said. "We see ourselves as a media company."
Any acquisitions made at this stage would follow a period of aggressive Irish expansion for UTV. In March this year, the group took a 50 per cent stake in Dublin media start-up Bocom Ltd, a company supplying advertising, news and weather content via satellite to high-quality plasma screens in public areas. Bocom has already completed a deal with Aer Rianta to supply content to screens in Dublin Airport's baggage halls.
One month later, a deal to acquire Limerick-based Treaty Radio for €15.74 million was concluded, giving UTV ownership of the Live95FM station. This acquisition, currently awaiting final approval from the Broadcasting Commission of Ireland, followed the completion of UTV's €14.2 million purchase of the 40 per cent of Cork-based County Media that it did not already own.
As well as expanding its presence in the Republic, UTV is positioned to enter new radio marketplaces in Britain through membership of a new consortium, Absolute Radio UK. This group, which includes a German radio group and a number of senior radio executives, has already applied for a regional licence in the East Midlands area.
He said that further applications would be made for licences in the West Midlands and in Kent, with Absolute prepared to join with other parties in each deal if necessary. One partner already on the table is British entertainment group Cream.
At the earlier annual general meeting, UTV shareholders heard the group had suffered a 2 per cent fall in television advertising during the first quarter of 2002, compared to a 13 per cent advertising fall overall for the ITV network.
Company chairman Mr John McGuckian attributed this relatively strong performance to a buoyant local advertising market amid "the worst advertising downturn in living memory". He added that the commencement of the Word Cup could be expected to provide some advertising stimulus during the current quarter.
"It now seems that ITV and UTV will achieve a performance marginally ahead of the same quarter last year," Mr McGuckian said, warning however that "it would not be prudent to signal a possible upturn".
After the meeting, to which the media were not invited, Mr McCann said that UTV's radio interests had also seen "some reduction in growth", but professed himself cautiously optimistic" about the future. UTV's stock closed unchanged yesterday at its 2002 high of €6.10.
