Profits dive at owner of Midlands radio station
Profits have slumped at UTV Media, which owns radio station Signal 107 serving Telford, Wolverhampton and Kidderminster as well as TalkSport, after it racked up "significant" losses launching a new TV station in southern Ireland.
UTV said its established radio and TV stations had seen "continued strong audience performance" as group revenue edged up £500,000 to £58.3 million for the first six months of the year. But pre-tax profits collapsed to just £1m from £10m a year ago.
Company chairman Richard Huntingford said: "The challenges of establishing a new television channel are evident in these results which reflect the significant losses incurred by UTV Ireland in its first six months on air.
"Less evident, but not to be lost sight of, is the inherent value created by the establishment of a mainstream television channel in Europe's fastest growing economy, with long-term licensing, programme supply and infrastructure in place."
There was no update on UTV's talks with an undisclosed third party about selling its TV stations, both in the south and in Northern Ireland. It confirmed the talks earlier this week. Some reports have suggested it is in discussions with ITV.
UTV has operated a television station in Northern Ireland since 1959 buts expansion into the south has struggled. UTV Ireland launched in January and it has made an operating loss of £7.5m in the first six months.
Radio figures have been hit by a revenue decline at TalkSport, but local radio stations in the UK saw modest growth. UTV is currently selling off its Juice FM station in Liverpool for about £10 million.
