Ireland's economic malaise, a downturn in England's radio-advertising market and the absence of a major sporting event were a "triple whammy" for Northern Irish TV-and-radio group UTV Media (UTV) last year, says finance director Norman McKeown. Promisingly, however, this whammy was concentrated in the first half. The owner of talkSPORT radio saw its operating profit slump 36 per cent year on year in the first six months of 2013, only to swing back to growth of 10 per cent in the second half.
UTV continued its shift towards broadcasting, selling off several online operations and winning the exclusive air rights to ITV Studios' programming from 2015 in the Republic of Ireland - a new territory for the group's TV business. Its focus may pay off as depressed consumer confidence and advertising spending rebound in the country. TV advertising in Ireland rose 11 per cent in the second half after five years of decline.
The company has fared better so far this year, with revenues from Radio Ireland, Radio GB and the TV business rising 9, 7 and 5 per cent, respectively. The upcoming football World Cup in Brazil also promises to drive listeners to talkSPORT for match commentary. Broker Numis expects pre-tax profits of £17.8m, giving EPS of 14.5p, from £16.9m and 14.3p in 2013.
| UTV MEDIA (UTV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 244p | MARKET VALUE: | £234m | |
| TOUCH: | 242-245p | 12-MONTH HIGH: | 268p | LOW: 134p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 105p* | NET DEBT: | 49% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 112 | 17.6 | 12.3 | 2.0 |
| 2010 | 119 | -13.7 | 9.0 | 4.0 |
| 2011 | 122 | -21.7 | -26.9 | 6.0 |
| 2012 (restated) | 112 | 20.1 | 15.3 | 7.0 |
| 2013 | 108 | 16.9 | 15.1 | 7.0 |
| % change | -4 | -16 | -1 | - |
Ex-div:28 May Payment:15 Jul *Includes intangible assets of £178m, or 185p a share | ||||
