UTV Cautious On Future Outlook

A continuing environment of economic uncertainty has led to a cautious outlook at UTV in Belfast.

The commercial broadcaster said that its airtime bookings offer limited forward visibility and that "UTV is cautious about the remainder of the year".

However, the Belfast-based multi-platform business has seen both its TV and radio divisions off to a good start in 2011, outperforming in their respective markets.

"We are currently on track to meet market expectations for the year," said a statement that followed its Interim Management Statement.

UTV Media plc said that the statement covered the period from the beginning of the Group's current financial year, 1 January 2011, to the date of the announcement and incorporates the four-month trading period ended 30 April.

It reported that the Group experienced an overall revenue increase on continuing operations of 3% compared to last year.

"Revenue in our Radio GB division for the four months to the end of April grew by 4% compared to the same period last year," said the UTV statement.

"The UK radio market declined by 2% in the same period. We anticipate that revenue in May and June in this division will be 9% lower than last year by reflecting the negative effect of the World Cup comparison."

In the Irish Republic, revenue in the Radio Ireland division declined by 5% in the period to 30 April compared to last year with Sterling translation exchange losses accounting for 2%.

"The like for like decline in sales was therefore 3%. It is expected that this like for like trend will continue in May and June," UTV reported.

New Media

Revenue in UTV's New Media business in the first four months of 2011 is similar to that achieved in the same period in 2010 and this trend is expected to continue in May and June.

Revenue in the TV division to the end of April increased by 8% in line with the network and it is anticipated that this division will experience revenue growth of 2% in May and a decline of 8% in June as a result of the World Cup comparison.

Net debt at UTV also continued to improve in line with previous guidance.

(BMcC/KMcA)