Tough conditions in Ireland forced Irish TV and radio broadcasters UTV Media to take a £45m impairment hit on its Radio Ireland assets in 2011. Adjust for that, though, and group pre-tax profit rose 10 per cent in 2011 to £23.3m while sporting events this summer should result in decent growth this year. All of which leaves the shares looking too cheaply rated.
Meanwhile, Radio GB - which includes talkSPORT - was buoyed last year by coverage of the IRB Rugby World Cup, and live Premier League football and divisional operating profit rose 6 per cent to £12.4m. That helped offset an 8 per cent operating profit slide in the Irish Radio business - which, encouragingly, still outperformed the wider Irish radio market. Moreover, and while the Irish Radio business is braced for a tough 2012, Radio GB should continue to outperform the UK radio sector.
Meanwhile, recovery has been maintained in the television business, with operating profits there soaring 18 per cent to £6.5m. That reflected successful programming and growing advertising revenues at UTV's on-demand service, UTV Player. Still, revenues here did slide 5 per cent in the first quarter of 2012.
Peel Hunt expects 2012 adjusted pre-tax profits of £26.1m, giving EPS of 20.2p (2011: £23.3m/19p).
UTV MEDIA (UTV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 145p | MARKET VALUE: | £ 138.3m | |
| TOUCH: | 140-145p | 12-MONTH HIGH: | 157p | LOW: 93p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | NA | |
| NET ASSET VALUE: | 87p | NET DEBT: | 65% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 114 | 19.8 | 27.2 | 13.5 |
| 2008 | 120 | 16.2 | 14.3 | 5.30 |
| 2009 | 112 | 17.6 | 12.3 | 2.00 |
| 2010 | 119 | -13.7 | -8.95 | 4.00 |
| 2011 | 122 | -21.7 | -26.9 | 6.00 |
| % change | +3 | - | - | +50 |
Ex-div:23 May Payment:16 Jul *Includes intangible assets of £173.8m or 182p per share | ||||
