World Cup to fuel ad revenue rise, says UTV Media

UTV Media expects the World Cup to fuel a 13% revenue rise in its radio division, which includes TalkSport, and a 19% boost to TV advertising across May and June. UTV, which operates the Northern Ireland ITV franchise and runs 20 radio stations in the UK and Ireland, said that total group revenues rose 2% on a like-for-like basis in the four months to the end of April. This is the first time UTV Media has recorded growth since 2008. The company's Radio GB division, which includes TalkSport and free weekly magazine Sport, saw revenues rise 8% year-on-year in the first four months. The performance – which excludes the results of London-distributed Sport, which the company says hit profitability in the period – exceeds that of the UK radio market, which grew 5% in the first four months. "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," the company said. "Sport Magazine, which has been profitable in the period, is also benefiting from these factors". UTV Media's television operation saw revenue increase by just 1% in the four months to the end of April, fuelled by sales in Northern Ireland falling by 13% for the period. However "improving market sentiment" and the World Cup should give the division a 19% ad revenue boost in May and June. The Belfast-based company said that revenues at its Radio Ireland continued to be under pressure falling 7% year-on-year in the first four months. On a like-for-like basis, excluding the impact of exchange rate effects, the fall was 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," the company said. "Airtime bookings continue to be short term thereby offering limited forward visibility," UTV Media said in a statement. "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." • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".