Ulster Television said today it has pulled out of its merger talks with Scottish-based media company SMG, citing weak advertising markets.
In a statement, UTV also said it had taken into account SMG's interim results when it said the outlook for the rest of the year was challenging.
SMG - the owner of Virgin Radio and most of Scotland's commercial TV network - last week said it would sell its cinema and outdoor advertising businesses, Pearl & Dean and Primesight, to focus on its core activities, and was willing to resume a merger talks with UTV.
The group posted a 2 per cent fall in revenue to £88.6 million sterling, reflecting weakness in the advertising market, as lower sales in television failed to offset growth in radio and outdoor.
SMG, which has twice rejected a merger proposals from Ulster Television, said it was willing to hold talks on the basis of a new proposal but has yet to receive a formal response from UTV.