'News: Ulster Television plc Reports £4.8m Operating Profit From Radio Stations Acquired From The Wireless Group plc' by Grant Goddard
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News story about UK media owner Ulster Television plc reporting £4.8m operating profit from commercial radio stations acquired from The Wireless Group plc, written by Grant Goddard in March 2006 for The Radio Magazine.
![News: Ulster Television plc Reports £4.8m Operating Profit From Radio Stations Acquired From The Wireless Group
plc Page 2
©2006 Grant Goddard
Ulster Television plc [UTV] generated a £4.8m operating profit last year from
its British radio stations acquired last June from The Wireless Group plc for
£96.9m. In 2004, these stations had made a £0.2m loss under Kelvin
MacKenzie’s management team.
Despite the advertising downturn, UTV managed to increase revenues at its
British stations by 5% on a like-for-like basis, and by 17% at its Irish stations.
Operating profit from the Irish stations was £3.8m, up from £2.5m the previous
year.
John McCann, UTV group chief executive, commented: “Although the UK radio
market overall is experiencing adverse trading conditions, our stations are
bucking the trend. We are forecasting growth of 9% for the first quarter in 2006
in Great Britain. This compares to an overall decline in the market of 11%. We
are expecting a similarly strong performance in our advertising revenues in
Ireland, with an increase of 9% in the first quarter. In addition to acquiring
Wireless, we also launched 'U105' Belfast during the year and, since year-end,
have launched 'Talk 107' in Edinburgh. Radio is an exceptionally important
area for the Group and we are keen to continue growing the business, building
on our recent successes.”
UTV said that advertising and sponsorship revenues at its national 'TalkSport'
station were expected to increase by 20% in the first quarter of 2006, with
“strong demand” expected in the following quarter because of the World Cup.
The group said it is investing in audience research and “staff development” at
its local stations, where revenues are expected to increase by 2% in the first
quarter of 2006, but notes that such investment is “not a short-term fix”, though
it describes these stations’ progress as “encouraging”. The two new station
launches in Belfast and Edinburgh are expected to incur a £1.8m loss in 2006,
but are projected to break even by their third year of operation.
Rumours that UTV is negotiating to acquire The Local Radio Company plc
were denied by McCann, who said “there is nothing happening between us”.
Asked if UTV was about to make another acquisition, McCann added: "If we
were, I would say 'no', and if we weren't, I would say 'no'. At least I'm
consistent, if nothing else".
[First published in 'The Radio Magazine' as 'UTV Moves Wireless Group Stations Into Profit', #727, 15 March 2006]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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'News: Ulster Television plc Reports £4.8m Operating Profit From Radio Stations Acquired From The Wireless Group plc' by Grant Goddard
- 1. NEWS: ULSTER TELEVISION PLC REPORTS £4.8M OPERATING PROFIT FROM RADIO STATIONS ACQUIRED FROM THE WIRELESS GROUP PLC by GRANT GODDARD www.grantgoddard.co.uk March 2006
- 2. News: Ulster Television plc Reports £4.8m Operating Profit From Radio Stations Acquired From The Wireless Group plc Page 2 ©2006 Grant Goddard Ulster Television plc [UTV] generated a £4.8m operating profit last year from its British radio stations acquired last June from The Wireless Group plc for £96.9m. In 2004, these stations had made a £0.2m loss under Kelvin MacKenzie’s management team. Despite the advertising downturn, UTV managed to increase revenues at its British stations by 5% on a like-for-like basis, and by 17% at its Irish stations. Operating profit from the Irish stations was £3.8m, up from £2.5m the previous year. John McCann, UTV group chief executive, commented: “Although the UK radio market overall is experiencing adverse trading conditions, our stations are bucking the trend. We are forecasting growth of 9% for the first quarter in 2006 in Great Britain. This compares to an overall decline in the market of 11%. We are expecting a similarly strong performance in our advertising revenues in Ireland, with an increase of 9% in the first quarter. In addition to acquiring Wireless, we also launched 'U105' Belfast during the year and, since year-end, have launched 'Talk 107' in Edinburgh. Radio is an exceptionally important area for the Group and we are keen to continue growing the business, building on our recent successes.” UTV said that advertising and sponsorship revenues at its national 'TalkSport' station were expected to increase by 20% in the first quarter of 2006, with “strong demand” expected in the following quarter because of the World Cup. The group said it is investing in audience research and “staff development” at its local stations, where revenues are expected to increase by 2% in the first quarter of 2006, but notes that such investment is “not a short-term fix”, though it describes these stations’ progress as “encouraging”. The two new station launches in Belfast and Edinburgh are expected to incur a £1.8m loss in 2006, but are projected to break even by their third year of operation. Rumours that UTV is negotiating to acquire The Local Radio Company plc were denied by McCann, who said “there is nothing happening between us”. Asked if UTV was about to make another acquisition, McCann added: "If we were, I would say 'no', and if we weren't, I would say 'no'. At least I'm consistent, if nothing else". [First published in 'The Radio Magazine' as 'UTV Moves Wireless Group Stations Into Profit', #727, 15 March 2006] Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk