UTV radio profits soar in State

UTV's radio stations in Cork and Limerick posted strong profit growth in 2006 due to stronger than expected increases in advertising revenues, according to accounts just filed.

Revenues at Radio County Sound rose by 18.2 per cent to €3.6 million in the year to the end of last December while its pre-tax profit was up 21.5 per cent to almost €2.1 million.

UTV described the trading performance in the accounts as being "particularly strong" with "better than expected growth" in 2005 revenues. The station operates a licence in Co Cork.

In Limerick, meanwhile, Treaty Radio posted a 33 per cent rise in pre-tax profits to €1.5 million in the same 12-month period while its revenues increased by 16 per cent to €3.8 million.

The company, which operates Live 95FM, had its licence renewed by the Broadcasting Commission of Ireland (BCI) for a further 10 years in January 2007. The licence came into effect in October.

No dividend was paid by either station to UTV, which is listed in both Dublin and London.

The accounts for both companies state that the BCI's decision to issue a raft of new radio licences here "may well impact on future revenue growth in the short term but may benefit the radio industry as a whole in the long term".

The accounts show that Radio County Sound had accumulated profits of €5.1 million at the end of December while Treaty had retained profits of just more than €3 million.

Radio County Sound incurred payroll costs of €559,846 last year for its 20 staff while Treaty paid €1.2 million in wages, salaries and other costs to its 46 employees.

UTV owns five local radio licences in the Republic.

In August, the Belfast-based broadcaster said advertisement sales here in the six months to the end of June had been flat due to "short-term weakness in local advertising revenue" between April and June.

After accounting for start-up losses of £400,000 at its Belfast station, UTV said its Irish radio operating profits were £2.2 million in the first half of the year, down from £2.4 million for the same period in 2006.