UTV revenue and profits fall

Irish media group Ulster Television has suffered a 24% drop in television operating profits, according to its preliminary year end results.

UTV, which owns the ITV licence for Northern Ireland, has seen its TV ad revenues fall by 9% in the last year, with profits going from £14.5 million to £12.7 million.

Revenues it makes from ITV network sales will be down 9% in the first quarter, but revenues in its own region did see a rise resulting in overall flat growth.

The company is also in talks to takeover ITV's sales house function in Ireland from April 1, with ITV continuing to handle UTV's sales in Great Britain.

UTV's radio division, which includes The Wireless Group - acquired in 2005 - did better with ad revenues rising to 6% in Great Britain, and 12% in Ireland.

John McCann, group chief executive, said: "We have had a positive start to 2007 and I remain confident of our ability to continue to outperform against a backdrop of difficult trading conditions in the GB advertising market."

Radio profits were up 52% to £14.6 million, and for the first time the group is making more money from radio than television.

Group revenues climbed 22% to £113.6 million, reflecting the full-year impact of The Wireless Group, now referred to as Radio GB.

Earlier this year, UTV had been considering a merger with owner of Virgin Radio and Scotland's ITV licences, Scottish Media Group, but talks came to an end this month when SMG had a management reshuffle.