The following Interim Management Statement for UTV Media plc covers the period from the beginning of the Group’s current financial year, 1 January 2010, to the date of this announcement and incorporates the Group’s four month trading period ended 30 April 2010.
During those four months the Group experienced an overall revenue increase of 5% compared to last year. After adjusting for the impact of foreign exchange and Sport magazine, which was acquired in June 2009, the like for like increase was 2%.
Other than the information contained in this Interim Management Statement, there have been no material events or transactions in the period from 1 January 2010 to 18 May 2010 which have affected UTV and its financial position that have not been previously disclosed.
Trading performance for the four month period ended 30 April 2010 and Outlook by Business Division
Radio GB
Revenue in our Radio GB division for the four months to the end of April was up by 8%, based on continuing operations and excluding the contribution from Sport magazine. This is compared to a market which we believe grew by 5% during the same period. We anticipate that revenue in this division will grow by 13% in May and June reflecting better underlying market conditions and the positive effect of the World Cup. Sport Magazine, which has been profitable in the period, is also benefiting from these factors.
Radio Ireland
Revenue in our Radio Ireland division declined by 7% in the period to 30 April compared to last year with sterling translation exchange losses accounting for 2%. The like for like decline in sales was therefore 5%. This negative trend is continuing but with some improvement in May and June which are expected to be down by 3% on a like for like basis.
Television
Revenue in the Television division to the end of April increased by 1% with Dublin sales being down by 13%. Improving market sentiment and the World Cup should lead to much stronger revenue growth of 19% in May and June.
New Media
The performance of our New Media business in the first four months of 2010 is in line with that achieved in the same period in 2009. This is expected to continue in May and June.
Net Debt
Net debt continues to reduce in line with our expectations and we anticipate that it will continue to decline to 31 December 2010 in line with previous guidance.
Summary and Outlook
Airtime bookings continue to be short term thereby offering limited forward visibility. We are encouraged by the fact that trading in the first half of 2010 is ahead of our expectations, particularly in talkSPORT and Television. However, we remain cautious about the remainder of the year, due to the uncertainty surrounding the pace of recovery in the UK and the timing of recovery in the Republic of Ireland.
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