UTV Media plc - Interim Management Statement
This Interim Management Statement covers the period from the beginning of the
Group's current financial year, 1 January 2014 to the date of this announcement
and incorporates the Group's three month trading period ended 31 March 2014.
3 months to end March 2014 2013 % Change
£m £m
Group Revenue 27.8 26.0 7%
Radio GB 13.3 12.1 10%
Radio Ireland 5.1 4.9 6%
Television 9.4 9.0 4%
Radio GB
Radio GB revenues grew by 10% in the 3 months to March. talkSPORT's revenue was
up by 16% in the quarter which reflects growth of 3% in the national market
along with the positive impact of the build up to the 2014 FIFA World Cup.
Total local revenues were unchanged as a result of an anticipated decrease in
revenues from digital multiplexes.
We expect that this strong growth in talkSPORT associated with the FIFA World
Cup will continue into Q2, with revenues forecast to be up 45% year on year.
Together with rising local radio revenues, forecast in Q2 to be up 2% year on
year, we anticipate that our Radio GB divisional revenue in the second quarter
will be 26% up on the same period last year, in line with our forecasts. Radio
GB revenue for the first six months of 2014 is consequently expected to be up
18% on last year.
Radio Ireland
Radio Ireland revenues grew in the first quarter of 2014 with an increase of 6%
(9% on a local currency basis) representing an outperformance against the
market which was estimated to be up by around 4% (in local currency) in the
same period. We expect positive market conditions in Q2 (market up around 1%),
to result in a revenue increase of 4% (7% on a local currency basis) in this
period. As a result, Radio Ireland revenue for the first half of 2014 is
anticipated to be up 5% (8% on a local currency basis) on the same period last
year.
Television
As expected, there was growth in Television revenues in Q1 of 2014, with London
Net Advertising Revenue (NAR) up 3%, Irish NAR up 11% and total revenues up 4%.
In Q2 we anticipate total Television revenues to be up 15%, with London NAR to
increase by 19% and our Irish NAR to increase by 4%, compared to the same
period in 2013. Television revenues for the six months to June 2014 are
expected to be up 9% on last year.
Net Debt
Net debt at 31 March was £45.2m (£47.1m at 31 March 2013).
Outlook
The better trading conditions in H2 2013 have continued, as anticipated, into
2014 with Group revenue growth of 7% in the first three months of the year. We
are pleased to be able to report that these positive market conditions are
continuing into Q2 and, along with the revenue boost arising from the FIFA
World Cup, we expect to see Group revenue increase by 18% in the second quarter
of 2014 and by 12% for the first six months, in line with expectations.
It is encouraging that revenue growth has returned to the Irish television
market as we progress our plans to launch a new television channel in Ireland
in 2015. With ITV Studios programming providing the spine of the schedule, we
are well advanced in acquiring additional attractive programming and in
developing high quality local programming which will appeal to Irish viewers.
We have appointed key personnel with proven track records in the Irish
marketplace who will be supported by our already strong media team and existing
base of high quality media assets in Ireland. We remain confident of the
opportunity that the new channel offers us to create significant long term
shareholder value.
UTV's next scheduled announcement of financial information will be the release
of our interim results (to 30 June 2014) which is provisionally scheduled for
26 August 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, Director of Communication +44 (0) 28 9026 2188 /
+44 (0) 7879 666 427
Maitland
Martin Burrow +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 and Television. 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. The division also
includes a specialist digital services business and full service digital
agency.
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.