Pre-tax profits climbed by 29 per cent to £8 million (€11.7 million) at UTV over the first half of the year, but growth was held back by weakness within the group's radio division.
The profits came on turnover of £30.1 million, which was up 17 per cent on 2003. UTV chairman Mr John McGuckian welcomed what he described as "another set of strong financial results". Mr McGuckian pointed to the firm's television division as a particular highlight, noting that UTV continued to outperform its peers across the ITV network.
Television operating profits climbed by 32 per cent to £7.2 million over the first six months, as advertising revenues rose by 16 per cent. This compared to a 3.8 per cent increase in advertising spend across the ITV network, with UTV's turnover boosted by its ability to attract revenue from both the Republic and the UK.
The firm's radio division was less buoyant, with Dublin station Q102 the main drag on performance. Davy analyst Mr Mark Hannon yesterday described Q102 as UTV's "problem child".
"One would hope that the improvement in Q102's market share from 5 to 7 per cent in the first six months of the year will provide a much-needed catalyst for this division in the second half," Mr Hannon said.
Q102 posted an operating loss of £600,000 for the first half, having lost £250,000 in the same period of 2003.
This weighed on the firm's other radio interests, with the segment as a whole generating operating profits of £842,000, down from £1 million. UTV also owns County Media in Cork and Treaty Radio in Limerick and was recently defeated in a bid to win a new radio licence in Dublin.
UTV business development director Mr Scott Taunton said the Q102 loss had come as no surprise to the company, which spent €1 million relaunching the station earlier this year.
He predicted that the station would move into profit next year.
Mr Taunton said UTV was "surprised" to have fallen out of the race for Dublin's new alternative rock radio station.
He confirmed that the firm would apply for a new Belfast station later this year, as well as indicating that UTV will seek "a couple of" urban acquisitions in the Republic. The firm made a bid for Galway Bay FM earlier this year but no deal ensued.
UTV's new media division, which was recently expanded to include the telephony offering UTV Talk, made an operating profit of £532,000 over the half. Mr Taunton said internet profits were up by 42 per cent.
UTV will award a dividend of 4.5p, up 9.8 per cent on the previous year. The firm's shares gained 12p to close at 428p in London yesterday.
