MEDIA GROUP UTV Media has reported a 7 per cent increase in revenue for the first four months of this year.

In an interim management statement issued yesterday, the Belfast- based group said UTV Radio, now its fastest-growing division, was the key reason for the improved performance.

UTV Media highlighted the strong contribution made by its radio stations in Ireland and Britain as one of the key drivers of underlying growth.

But it also revealed there has been a fall-off in revenue from its core television business in Northern Ireland.

The group, whose business portfolio includes 24 radio stations, a new media business and UTV Television, said revenue from its television division was down 3 per cent.

Its new media division, which includes its internet operations, also experienced a fall in revenue - down by 4 per cent in the first four months of 2008.

The Belfast group operates the ITV franchise in the North, which is estimated to be also available in 70 per cent of homes in the Republic.

UTV Media has warned that the disappointing performance in the first four months of the year from this division is likely to continue for a six-month period in total.

During the period under review, from January to April of this year, the group completed the acquisitions of Dublin-based radio station FM104 and Belfast-based web development company Tibus.

As a result of the impact of these acquisitions, the group's actual like-for-like growth was reduced to 4 per cent.

UTV Media is bullish about its short-term growth forecasts.

Its stations in Britain delivered a 7 per cent growth in revenue in the first four months thanks to a contribution from talkSPORT, one of the rising stars in its UK portfolio.

In the interim statement, UTV Media stated that this growth pattern was likely to continue.

The message was the same for its radio stations in the North and the Republic.

UTV Media said: "Our Radio Ireland division experienced growth of 32 per cent, with sterling translation exchange gains and acquisitions accounting for 15 per cent and 9 per cent of the growth respectively.

"Like-for-like growth of 8 per cent was underpinned by strong national agency revenues."