UTV MEDIA has blamed a “difficult economic environment” for a 12 per cent slump in total revenue during the first 10 months of 2009.
The Belfast multimedia group, which operates the ITV franchise in Northern Ireland, said the like-for-like decline in revenue was most sharply felt by its core television division.
The group’s television advertising revenue in the 10-month period to October fell by 21 per cent, dragged down by a 25 per cent drop in sales in Ireland.
UTV said it expects TV advertising revenue in the last two months of the year to be slightly stronger.
It is currently predicting a 10 per cent decline in TV advertising revenue for November and a 3 per cent decrease for December.
The Belfast group also owns more than 20 radio stations in Britain and Ireland, a new media division and a sports magazine which it acquired earlier this year.
In an interim management statement, UTV said the rate of decline was easing in all of its markets.
“With substantial cost cuts having been achieved, we expect operating profits for 2009 to be broadly in line with consensus expectations,” the group added.
But the latest trading update shows that, with the exception of its new media division where revenue grew by just 1 per cent, UTV has taken a battering in the recent economic storms.
In the 10 months to October, UTV’s Radio GB division, which includes talkSport, saw revenue drop by 10 per cent.
UTV said it expects revenue decline to slow at its Radio GB division in line with improving market conditions.
Its Radio Ireland operations, which includes its Belfast radio station, enjoyed a slight rise in revenue.
In Ireland, the group’s radio operations were boosted by the acquisition of the Dublin-based FM 104 and sterling exchange gains.
But, overall, UTV’s Irish radio division still suffered a like-for-like 19 per cent decline in sales compared to last year.
The Belfast media group expects the pattern to continue with revenues predicted to decline this month and next by an estimated 8 per cent.
Over the last year, UTV has been engaged in a major cost-cutting exercise.
In the trading statement, the group said it was confident that it will achieve its target of “£6 million cost savings” on a like-for-like basis during 2009.
But it has also warned that “new activities” this year and the cost of capitalising on opportunities presented by next year’s World Cup, will add to its cost base in 2010.
Looking ahead, the group said: “Airtime bookings remain extremely short term, offering limited visibility, and therefore we continue to be cautious about trading prospects for 2010.”
