CN
From Media Guardian:
There's long since been speculation on here that UTV are reducing their expenditure on local television, creating a poor, shabby service for the local ITV audience. Well their statement today simply admits that. While TV profits remain stable at £7.3m, advertising revenues are lower, the profits therefore subsidised by "tight cost control in its television division."
The question though is this. How long can they keep cutting costs in television to support a satisfactory level of profit before we start to notice a significantly reduced quality in our local service? We already notice the rough edges, but how much worse can it get until enough is enough and they have to start swallowing a loss.
While on the surface UTV may appear profitable owing to it's radio portfolio, how long before UTV television becomes a loss-making division and the thorn in UTV's side? Where it not for the cross-promotional opportunities for their other brands, especially U105, I'd say an ITV plc takeover must surely be on some minds somewhere by now.
Quote:
UTV grows half-yearly profits
Stephen Brook
Monday September 12, 2005
Ulster Television increased its half-year profits by 11%, the Belfast-based media group said today
UTV, which holds the ITV licence in Northern Ireland, also said it was making "good progress" integrating the Wireless Group, the British radio company it bought in June for £98.2m.
It said TalkSport, Wireless's national sport station, was "performing very well" and revenues should rise 7% in the third quarter.
UTV revenues grew 17% to £35.8m in the six months to June 30, up slightly from £30.5m in the same period last year.
Television profits were stable at £7.3m, but radio profits soared 150% to £1.9m.
UTV, which has won a new commercial radio licence in Belfast, said it would rebrand the 16 local British radio stations it acquired with Wireless Group as UTV Radio.
The company said tight cost control in its television division should combat a soft advertising market, but it predicted that full-year TV revenues would be less than in 2004.
Stephen Brook
Monday September 12, 2005
Ulster Television increased its half-year profits by 11%, the Belfast-based media group said today
UTV, which holds the ITV licence in Northern Ireland, also said it was making "good progress" integrating the Wireless Group, the British radio company it bought in June for £98.2m.
It said TalkSport, Wireless's national sport station, was "performing very well" and revenues should rise 7% in the third quarter.
UTV revenues grew 17% to £35.8m in the six months to June 30, up slightly from £30.5m in the same period last year.
Television profits were stable at £7.3m, but radio profits soared 150% to £1.9m.
UTV, which has won a new commercial radio licence in Belfast, said it would rebrand the 16 local British radio stations it acquired with Wireless Group as UTV Radio.
The company said tight cost control in its television division should combat a soft advertising market, but it predicted that full-year TV revenues would be less than in 2004.
There's long since been speculation on here that UTV are reducing their expenditure on local television, creating a poor, shabby service for the local ITV audience. Well their statement today simply admits that. While TV profits remain stable at £7.3m, advertising revenues are lower, the profits therefore subsidised by "tight cost control in its television division."
The question though is this. How long can they keep cutting costs in television to support a satisfactory level of profit before we start to notice a significantly reduced quality in our local service? We already notice the rough edges, but how much worse can it get until enough is enough and they have to start swallowing a loss.
While on the surface UTV may appear profitable owing to it's radio portfolio, how long before UTV television becomes a loss-making division and the thorn in UTV's side? Where it not for the cross-promotional opportunities for their other brands, especially U105, I'd say an ITV plc takeover must surely be on some minds somewhere by now.
