11th Feb 2014 14:30
LONDON (Alliance News) - UK telecommunications industry regulator Ofcom said Tuesday it has renewed the licenses for Channel 3 and Channel 5 for a further ten-year period starting January 1 2015. The current licenses were due to expire at the end of 2014.
The licenses for Channel 3 are held by listed companies ITV PLC, STV Group PLC, and UTV Media PLC. Channel 5 is owned by publisher Northern and Shell PLC.
Ofcom will also create a separate licence for Wales, and a new West & South West of England licence for Channel 3 upon renewal.
All licensees must accept Ofcom's financial and area determinations for the license renewals to be granted.
Broadcaster STV said Tuesday that it had accepted the terms of the new broadcast licenses, and as a result it has been able to extend the maturity on its existing bank facility from December 31 2014, to March 31 2016.
UTV also accepted Ofcom's terms for the ten-year renewal of its Channel 3 licence in Northern Ireland Tuesday. UTV Chief Executive John McCann said in a statement that the contract renewal, "ensures UTV's continued investment in the local economy in Northern Ireland."
ITV said Tuesday that it has accepted Ofcom's decision, saying it provided it with, "the certainty we require to continue to invest for the long term in our broadcast business and in high quality content."
Shares in UTV, STV and ITV were buoyed by the news. UTV shares were up 2.6% at 248.75 pence, ITV shares up 2.0% at 205.10 pence, and STV shares up 5.1% at 342.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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