UTV expects its TV advertising turnover to rise by 16 per cent in the first half of the year as conditions in the media sector improve significantly.

In the first six months of 2003, UTV reported TV advertising revenue of £19.5 million (€29 million) and based on a 16 per cent increase in 2004, this would mean turnover of about €23 million.

Mr McGuckian said UTV was outperforming ITV, which was only growing by 3.5 per cent.

He said radio advertising in the Republic was also performing strongly. "Radio advertising in our Cork and Limerick stations has grown by 8.5 per cent in the first five months". The company did not disclose any figures for the rebranded Dublin station Q102.

But Mr McGuckian acknowledged said the poor performance at the station was being addressed.

"We have identified the weakness in our Dublin radio station and outlined remedial action which we are taking. We would expect to see further improvement in both listenership and revenue in the second half of the year."

The meeting heard that UTV's expansion into new media via broadband helped increase turnover in this unit by 40 per cent in the five months to the end of May.

Mr McGuckian asked shareholders to judge the performance of this division over a whole year. "Our key objective of increasing broadband penetration carries customer acquisition costs, which will reduce our operating margins, particularly in the first half of the year, but will drive further increases in profitability in the full year."

Speaking after the meeting, the company's financial director, Mr Jim Downey, admitted UTV would like to be on Sky Digital platform in the Republic

However, rights issues, held by TV3, prevented this from being realised.