UTV Media plc - Interim Management Statement 15th November 2013
This Interim Management Statement covers the period from the beginning of the
Group's current financial year, 1 January 2013 to the date of this announcement
and incorporates the Group's nine month trading period ended 30 September 2013.
9 months to end September 2013 2012 % Change
£m £m
Group Revenue 83.3 89.3 (7%)
Radio GB 37.1 41.3 (10%)
Radio Ireland 14.5 15.3 (6%)
Television 22.7 23.7 (4%)
New Media 9.0 9.0 -
3 months to end September 2013 2012 % Change
£m £m
Group Revenue 28.2 27.8 1%
Radio GB 13.1 13.5 (3%)
Radio Ireland 4.7 4.5 5%
Television 7.5 6.8 9%
New Media 2.9 3.0 (3%)
Radio GB
As anticipated, revenues in our Radio GB division reduced by 10% over the 9
months to September. talkSPORT's revenue was down by 15% in the period which,
when adjusted to reflect the absence of the Euro 2012 football tournament,
represents an outperformance of the industry decline of 8%. Local airtime
revenues increased by 8% in the 9 month period, compared to a market up 3%,
however our total local revenues were down by 3% as a result of a decline in
multiplex revenues which should stabilise in 2014.
Improving market conditions have led to a better performance in Q3 (overall
down 3% in line with the market), with revenues in our talkSPORT business up 5%
in August and 8% in September, and our local revenues up 2% and 1% in the same
months. We believe this growth in talkSPORT and local radio will continue into
Q4 and we anticipate our Radio GB divisional revenue in the final quarter will
be 4% up on last year.
Radio Ireland
In the 9 months to September our Radio Ireland revenues declined by 6% (9% on a
local currency basis) representing an outperformance against the market which
is estimated to be down by around 15% in the same period. As anticipated,
improving market conditions in Q3 (market down around 5%), along with a
positive foreign exchange impact, resulted in an increase of 5% in revenues (a
decline of 2% on a local currency basis). The outlook for Q4 is better and we
expect to continue to outperform the market with a revenue increase of 8% (5%
on a local currency basis).
Television
Total Television revenues in the 9 month period to September decreased by 4%,
with London NAR down 3% and Irish NAR down 1%. Growth from July onwards has led
to a 9% increase in total revenues in Q3, with our Net Advertising Revenue
(NAR) up by 11% in this quarter. In Q3 our London NAR was up 10% and our Irish
NAR was up by 15%. In Q4 we expect total Television revenues to be up 8%, with
London NAR in line with last year, and our Irish NAR to increase by 10%,
compared to the same period in 2012.
New Media
Revenue in the nine months to September was in line with the same period in
2012. In the third quarter challenging trading conditions facing our UTV
Connect business led to a decrease of 3% in divisional revenues. Excluding UTV
Connect, New Media divisional revenues were up 16% in the quarter.
We anticipate revenues in Q4 to be down 13% on the same period in 2012.
Excluding UTV Connect, New Media divisional revenues are expected to be up 1%
in Q4.
Net Debt
Net debt at 30 September was £56.1m (£52.5m at 30 September 2012) in line with
our expectations.
We continue to be very focused on our costs and cash management, recognising
the need to continue to carefully manage our resources.
Outlook
After the very difficult trading conditions of the first six months, it is good
to be able to report that the Group has moved into year on year revenue growth
in H2. As we progress towards 2014 we are further encouraged by the prospect of
a continuation of these improved market conditions together with the commercial
opportunities arising from the FIFA World Cup.
Last week's announcement of our plans to launch a new television channel in
Ireland, following our agreement with ITV Global Entertainment for the
exclusive rights, from January 2015, for key ITV programmes in the Republic of
Ireland, represents an exciting strategic step forward for the Group. A strong
television offering in the Republic of Ireland, replicating the success of our
television station in Northern Ireland, will complement our already
well-established radio and online activities throughout Ireland.
UTV's next scheduled announcement of financial information will be the release
of our preliminary results (to 31 December 2013) which is provisionally
scheduled for 18 March 2014.
Investor Enquiries www.utvmedia.com/investors
John McCann, Group CEO +44 (0) 28 9032 8122
Norman McKeown, Group Finance Director +44 (0) 28 9032 8122
Media Enquiries
Orla McKibbin, Head of Communications +44 (0) 28 9026 2188 / +44 (0) 7879 666 427
Maitland
James Devas +44 (0) 20 7379 5151
About UTV
UTV Media plc is one of the most successful media companies in the UK and
Ireland incorporating Radio, Television and New Media. UTV Radio GB operates
the no. 1 commercial national speech station - talkSPORT, 13 Independent Local
Radio Stations (ILRs) and a number of digital radio multiplexes throughout GB.
talkSPORT is Global Audio Partner of the Barclays Premier League through to
2016 and also incorporates Sport magazine. UTV Radio Ireland is the largest
operator of ILRs in Ireland. UTV Television is the Channel 3 licensee for
Northern Ireland and has the highest TV penetration locally. UTV New Media
comprises a leading internet service provider, specialist digital services
business, full service digital agency and three web-based portals.
Forward Looking Statements
Figures presented in this interim management statement are not audited. This
announcement contains certain forward-looking statements with regards to the
financial condition and results of the operations of UTV Media plc. These
statements and forecasts involve risk factors which are associated with, but
are not exclusive to, the economic and business circumstances occurring from
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 obligation to update the
forward-looking statements.