UTV radio growth offsets TV ad decline

UTV has reported that growth in its radio and new media operations helped offset a continuing decline in the television advertising market to produce a 12% boost in overall pre-tax profits for the first half of the year.

Despite profits at its television unit slumping by 15% - largely attributable to a 4% decline in television advertising revenues - the group's top-line figures were boosted by a 31% increase in radio operating profit to £9m and a 51% increase in new media operating profit, to £900,000.

"Good news stories about media companies are rare at the moment, however the group is pleased to announce significant growth in both turnover and pre-tax profits in the first half of 2008," said UTV group chief executive John McCann. "I am particularly pleased to report strong performances in both our radio and new media divisions. This is further indication that the group's decision to diversify away from a pure television offering was indeed the right one. This strategy has been key to protecting the group against the current market volatility and leaves us well placed to take advantage of opportunities arising from an upturn.

"While advertising remains a difficult environment, we expect to markedly outperform our peer group over the next quarter. With a strong management structure and clear strategic vision, we are confident in the group's ability to deliver robust revenue and profit figures in the face of uncertain macroeconomic conditions."