News

UTV figures rise but divi cut

26 August 2008 15:00:00

UTV Media increased turnover and profits for the half year and was confident about the future but the Ulster-based media firm slashed dividends as it looks to conserve cash.

Turnover for the half-year rose 8% to £62m, helping pre-tax profits increase slightly to £9.28m from £8.97m. Before exceptionals, profits rose 12% to £10.4m.

"Nevertheless, we are mindful that in uncertain economic conditions and having just raised equity from our shareholders, we should be prudent in conserving cash in so far as that is consistent with our broader objectives," said the group.

It has adopted a policy which would incorporate a dividend cover ratio in the range 1.75 - 2.0 times. Interim dividend was cut to 3.3p from 5.20p in the same period last year.

Television operating profits fell 15% to £4.7m though radio operating profit jumped 31% to £9m. New Media operating profits went up 51% to £0.9m.

"While advertising remains a difficult environment, we expect to markedly outperform our peer group over the next quarter," said the group.

"With a strong management structure and clear strategic vision, we are confident in the group's ability to deliver robust revenue and profit figures in the face of uncertain macro economic conditions," it added.

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