UTV Media delivered a mixed first-half performance, which saw a 14 per cent increase in radio operating profits to £10m offset by a 32 per cent slide in television profits to £2.1m. However, strong cash flow helped reduce debt and finance costs and there are a number of exciting initiatives due in the second half. Add that to an attractive and well covered dividend and the shares look cheaply rated.
Radio GB - which includes talkSPORT - was buoyed by the Euro 2012 football tournament, which helped boost talkSPORT's income 16 per cent to £17.2m. Together with higher revenue from local radio stations, Radio GB lifted first-half income 18 per cent to £6.9m. UTV has also won commercial radio rights for the FA Cup, which will help to promote talkSPORT beyond the UK. But, on the television side, net advertising revenue fell 3 per cent, dragged lower by an 8 per cent drop in Irish revenue. Although the new media division was strengthened by the acquisition of Dublin-based social media marketing specialist, Simply Zesty, which helped to boost divisional revenue from £5.8m to £6m.
Numis Securities has trimmed its full-year pre-tax profit estimate from £23m to £22.2m, with EPS shaved from 18.5p to 17.9p (from £23.3m and 18.9p in 2011).
| UTV MEDIA (UTV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133p | MARKET VALUE: | £127m | |
| TOUCH: | 130-134p | 12-MONTH HIGH: | 162p | LOW: 92p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | na | |
| NET ASSET VALUE: | 86p* | NET DEBT: | 61% | |
| Half-year to 30 Jun | Turnover (£m) | Pretax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 59.1 | 10.9 | 9.34 | 1.50 |
| 2012 | 61.6 | 11.0 | 7.07 | 1.75 |
| % change | +4 | +1 | -24 | +17 |
Ex-div: 12 Sep Payment: 15 Oct *Includes intangible assets of £176m, or 185p a share | ||||
