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ISEQ steady- UTV results examined

Tuesday, March 19 09:00:43

The ISEQ was lower yesterday and is slightly higher this morning at 3,910, up 4 points as World markets rebound from negative reactions to the Cyprus bailout.

UTV was in profit last year but lower revenues are examined by Davy Stockbrokers:

UTV Media has reported full year results that are in-line with expectations. Group EBIT came in at £23.9m (Davy: £23.0m) on revenues of £120.1m (Davy: £121.1m). A dividend of 5.25p per share has been declared, which takes the full year dividend to 7.00p, a 17pc increase year-on-year.

In GB Radio, the performance during the year can be characterised by two halves. The first half of the year was strong (driven by Euro 2012), while the second half showed a more lacklustre trading performance. For the year, revenue grew 4pc to £54.4m (Davy: £54.4m) while EBIT increased by 5pc to £12.9m (Davy: £12.3m). Interestingly, the group splits out the divisional performance from the losses incurred from talkSPORT international. Excluding losses, Radio GB operating profit would have been up by 12pc.

In Irish radio, revenue declined by 7pc (not helped by currency) to £20.9m (Davy: £20.2m). Divisional EBIT fell in line with revenue to £6.0m (Davy: £5.7m).

The group estimates that, in local currency terms, the Irish radio market was down by between 7pc and 10pc in 2012. For UTV to report a 7pc decline in sterling terms is a respectable result.

Television was the group's worst-performing division in 2012 - revenue fell 9pc to £32.5m (Davy: £32.8m). Divisional EBIT was £3.9m (Davy: £3.2m). The group notes that television sales from London performed in line with the market but that Irish sales were down 12pc, which accounted for the majority of the overall 7pc decline in revenue. New Media, the group's smallest division, recorded EBIT of £0.9m.

Outlook in line but may surprise some Current trading is in line with our expectations, which is for revenue to decline in Q1. GB and Irish radio are both expected to fall by 6pc in Q1, not helped by difficult comparatives in the UK and continued weakness in Ireland. Somewhat reassuringly, television advertising is expected to fall only 1pc in Q1 (compared to a 9pc decline in FY2012) according to Davy Stockbrokers.