Pre-tax profits at UTV have slipped by more than 25 per cent for the first six months of the year, although it managed to increase turnover and operating profits.
Pre-tax profits fell to £4.2 million (€5.95 million) from £5.7 million in 2002 mainly because of higher-than-expected interest charges. The firm's turnover was up 13.7 per cent to £25.7 million from £22.6 million, with operating profits rising slightly to just over £7 million.
The profits at operating level were in line with analysts' expectations, but adjusted earnings per share of 8.4p was 6.3 per below expectations, said Goodbody analyst Mr Neil Clifford.
UTV - which broadcasts ratings-topping shows like Coronation Street - said its radio division produced a particularly strong performance, with operating profits up 32 per cent at £1.04 million.
The company said it managed to increase television advertising by 1 per cent at a period when ITV reported a 5 per cent decrease.
Chairman Mr John McGuckian said he was optimistic about the second half of the year "when we would expect to again outperform ITV".
The company also gave details of its radio investments in the Republic: Live 95FM in Limerick and Lite FM in Dublin.
Lite incurred a small loss in the period while Live95FM helped lift total radio operating profit (before goodwill amortisation) to £1 million, compared to £800,000 in the first half of 2002.
The company disclosed that it owned 54 per cent of Bocom Ltd, the plasma-screen advertising company. UTV said it delivered a small profit in the first half.
Mr McGuckian also made some comments about the months ahead: "We are experiencing good revenue growth in radio, with advertising revenues expected to be up 12 per cent in the quarter to September 30th. The radio market is very short term but we would anticipate continuing growth for the rest of the year."
Analysts' reaction was muted, although Mr Shane Matthews of NCB said the rise in turnover was impressive. "Much of this growth was linked to a very strong performance from its new radio and new media operations," he said.
Mr Clifford said: "We are unlikely to change our full-year operating profits forecasts but we may be reducing our full year earnings forecasts to reflect higher interest costs."
The shares were unchanged in Dublin at €4.47.
