26th May 2006 12:00
Embargoed until 12 noon 26 May 2006 Ulster Television plc Chairman's AGM Statement Ulster Television Chairman, John B McGuckian gave the following trading updateat the annual general meeting of Ulster Television plc (UTV) today."Your company's success in both outperforming the market and in creating newprofit streams has been amply demonstrated over the past few years and is againevident in the Report and Accounts which are laid before you today. In alandmark year, and despite difficult trading conditions, earnings per shareincreased by 18% while foundations for future growth were laid."These foundations are already being built upon in 2006, with like-for-likerevenue growth in our radio stations in Great Britain up by 13% in the firstquarter compared to an 8% decline in the market as a whole. Continuingoutperformance is expected in the second quarter with the soccer World Cupdelivering a further stimulus to our national radio station, talkSport, andhelping to drive an expected 15% like-for-like improvement in our GB radioadvertising revenue compared to an anticipated 2% decline in the market in thesix months to 30 June 2006."Substantial outperformance is also being achieved in our Irish radio divisionwhere like-for-like advertising revenue is forecast to grow by 15% in the firsthalf and where particularly favourable economic conditions in the Republic ofIreland should maintain the momentum of growth into the second six months ofthe year."Our new radio stations in Belfast and Edinburgh have got off to a good startand are on target to achieve profitability in year three as planned, althoughin the current year budgeted losses of just under ‚£2M will impact upon profitgrowth. Nevertheless, the strong performance of our other radio assets shouldenable us to readily absorb these losses while significantly improving thecontribution to the bottom line."The contribution from television to group profitability continues to beaffected by adverse trading conditions in the television advertising market.The expected stimulus to the market of the football World Cup in June has notmaterialised and we are now forecasting our television advertising revenue tobe down by 6% in the first half of 2006. While this would significantlyoutperform ITV1 and take our share of network revenue to a record high of2.78%, nevertheless the anticipated reduction in revenue, coupled withincreased network programme costs in respect of the World Cup, will put marginsunder pressure."An anticipated revenue increase of 16% in our internet division in the firstsix months will be driven by broadband and telephony growth. Coupled withhigher margins, this should deliver improved profitability for the half year."Overall, then, the year to date is again characterised by outperformance. Thisoutperformance, particularly in radio, should mitigate against the generallydifficult trading conditions in advertising and help to sustain furtherprogress for your company in the current year." -Ends- For further information:UTVJohn McCann, Group Chief Executive +44 (0)28 9026 2202Jim Downey, Group Financial Director +44 (0)28 9026 2176Orla McKibbin, Head of Press and PR +44 (0)28 9026 2188Powerscourt +44 20 7236 5615Anthony Silverman +44 7909 926 020Rory Godson +44 7818 036 579ENDULSTER TELEVISION PLCRelated Shares:
WLG.L