18th Nov 2009 07:09
Interim Management Statement
The following Interim Management Statement for UTV Media plc covers the period from the beginning of the Group's current financial year, 1 January 2009, to the date of this announcement and incorporates the Group's ten month trading period to 31 October 2009.
During those ten months the Group experienced an overall revenue decline of 8% compared to the same period last year. The like for like decline was 12% after adjusting for the impact of the acquisitions of FM104 and Tibus, acquired in 2008, and Sport Magazine, which was first published by UTV Media in June 2009.
Other than the information contained in this Interim Management Statement, there have been no material events or transactions in the period from 1 January 2009 to 18 November 2009 which have affected UTV and its financial position.
Trading performance for the ten month period to31 October 2009 and Outlook by Business Division
Radio GB
Revenue in our Radio GB division in the period was down by 10%, based on continuing operations and excluding the contribution from Sport magazine. This compared to a market which we believe declined by 13% during the same period. We anticipate that revenue in this division will be down by 3% in November and 1% in December in line with improved market conditions. Sport magazine is expected to make a small loss in the year but to be profitable in 2010.
Radio Ireland
Our Radio Ireland division grew revenue by 1% in the period compared to last year with the FM104 acquisition accounting for 9% of this and sterling translation exchange gains contributing 11%. The like for like decline in sales was therefore 19%. The rate of decline in revenues is slowing, with revenue in November and December expected to be down on a like for like basis by 8% in both months.
Television
Revenue in Television in the period declined by 21%, underperforming the network due to sales from Ireland being down by 25%. Revenue in the last two months is expected to be somewhat stronger at 10% down for November and 3% down for December.
New Media
For the 10 months to the end of October New Media revenue in the period grew by 1%. Revenue in November and December is anticipated to be in line with this trend.
Cost Savings
We are confident of achieving our target of 6m cost savings on a like for like basis in 2009. However, the full year impact of new activities in 2009 as well as capitalising on the opportunity represented by next year's World Cup, will add to our cost base in 2010.
Net Debt
Euro exchange rate volatility continues. Assuming the year end exchange rate is comparable to the current levels then our net debt should decrease from the 96.3m at 30 June 2009 in line with previous guidance.
Summary and Outlook
Although the difficult economic environment continues to impact upon advertising revenue, the rate of decline is easing in all of our markets. With substantial cost cuts having been achieved, we expect operating profits for 2009 to be broadly in line with consensus expectations.
Airtime bookings remain extremely short-term, offering limited visibility, and therefore we continue to be cautious about trading prospects for 2010. Nevertheless it is reasonable to assume at this stage that the impact on advertising revenue of weakness in the Irish and UK economies will be mitigated in our largest division, GB Radio, by strong demand in a World Cup year for our talkSPORT and Sport Magazine products.
For further information contact:
Maitland +44 (0) 20 7379 5151Anthony SilvermanRowan BrownUTV Media plcJohn McCannGroup Chief Executive+ 44 (0) 28 9026 2202Norman McKeownGroup Finance Director+ 44 (0) 28 90262098Orla McKibbinHead of Communications+44 (0) 28 9026 2188Cautionary Statement
This report contains certain forward-looking statements with regards to the financial condition and results involve risk factors which are associated with, but are not exclusive to, the economic and business circumstances occurring for time to time in the countries and sectors in which the group operates. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Other than required by law, UTV Media plc undertakes no obligations to update the forward-looking statements.
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