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 2015 to the date of this announcement
and incorporates the Group's three month trading period ended 31 March 2015.
3 months to end March 2015 2014 % Change
£m £m
Group Revenue 29,711 27,878 7%
Radio GB 13,276 13,275 0%
Radio Ireland 4,653 5,154 (10)%
Television 11,782 9,448 25%
Radio GB
Radio GB revenues were unchanged in the three months to March. talkSPORT's
revenue, including talkSPORT International and Sport Magazine, was down 1% due
to the strong comparison from the World Cup build-up in 2014. The national
radio market was up 5%. In comparison to the same three month period in 2013,
talkSPORT revenues were up by 14%. Revenues from our Local Radio business were
up by 2% and within this our airtime revenue was up by 5%. This compared to a
local market growth of 4%.
In Q2, again against particularly strong comparatives, we anticipate Radio GB
revenues will decrease by 16%, with talkSPORT down by 25% and local radio
station revenues flat, in line with expectations.
Radio Ireland
Radio Ireland revenues were unchanged in the three months to March on a
constant currency basis and down 10% including exchange movement. This
performance was in line with our forecasts, with Q1 in 2014 particularly
strong. We believe the Q1 performance is in line with the Irish commercial
radio market.
In Q2 we anticipate Radio Ireland revenues will be up 1% on a constant currency
basis and down 10% including exchange movement, in line with expectations in
local currency.
Television
Television revenues grew by 25% in the three months to March. Excluding Tibus
and Simply Zesty, which grew by a combined 10%, our core Television business
grew by 27%. This growth was mainly generated by our Dublin based start-up
station, UTV Ireland in its first three months. Revenue from our Northern
Ireland Television operations (UTVNI) was unchanged compared to the same period
last year, with Net Advertising Revenue (NAR) growth in our London sales office
of 7% and in our Dublin sales office of 8% being offset by the impact of
reduced local government advertising spend in our Belfast office.
In Q2 we anticipate Television revenues will increase by 37%, with core
Television growing by 42%, again due to the inclusion of UTV Ireland. UTVNI NAR
is expected to be down by 4% in this period with London down 1% and the Irish
offices down 13%. Tibus and Simply Zesty combined are anticipated to grow by
9%.
Outlook
Radio GB is operating to plan with price increases successfully implemented in
talkSPORT largely eliminating the traditional fall back in profitability in a
post major football competition year. The successful bid for the D2 DAB
multiplex licence offers a strong growth opportunity in 2017 after the
anticipated profit uplift from the Euros in 2016. Our Local Radio assets
continue to perform well and are outperforming the market. The strategic review
of these assets is ongoing.
We remain positive as to the full year performance of Radio Ireland in local
currency. We have market leading positions and we will continue to benefit as
the Irish economy continues to recover.
In Television our UTVNI revenue is expected to trend in line with market growth
for the London and Dublin sales offices but there remains uncertainty as to how
long the local government expenditure cuts will reduce our Belfast office
revenue.
As previously advised, UTV Ireland has had a slower start to the year. It is
still very early in the life of UTV Ireland and there is considerable
volatility in its performance. Given that volatility we think it would be
appropriate to reduce our revenue forecasts for 2015 by £2.5m. The strategic
logic of UTV Ireland in creating leading Television operations throughout
Ireland remains clear.
The next scheduled announcement of financial information by UTV Media plc will
be the release of our Interim Results (to 30 June 2015), which is scheduled for
25 August 2015.
Enquiries
Orla McKibbin, Director of Communications +44 (0)28 9026 2188 / +44 (0)7879 666 427
James Devas, Maitland +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
2019 and also incorporates talkSPORT International and Sport magazine. UTV
Radio Ireland is the largest operator of ILRs in Ireland. Television comprises
UTV in Northern Ireland which is the Channel 3 licensee licence holder, UTV
Ireland in the Republic of Ireland which commenced broadcasting on 1 January
2015, Tibus, a specialist digital services business and Simply Zesty, a 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.