There was growth in Television revenues in Q1 of 2014, with London Net Advertising Revenue (NAR) up 3 per cent, Irish NAR up 11 per cent and total revenues up 4 per cent. In Q2 UTV anticipates total TV revenues to be up 15 per cent, with London NAR to increase by 19 per cent and our Irish NAR to increase by 4 per cent, compared to the same period in 2013. TV revenues for the six months to June 2014 are expected to be up 9 per cent on last year.
Radio GB revenues grew by 10 per cent in the 3 months to March. talkSPORT’s revenue was up by 16 per cent in the quarter which reflects growth of 3 per cent in the national market along with the positive impact of the build up to the 2014 FIFA World Cup. Total local revenues were unchanged as a result of an anticipated decrease in revenues from digital multiplexes.
UTV expects that this strong growth in talkSPORT associated with the FIFA World Cup will continue into Q2, with revenues forecast to be up 45 per cent year on year. Together with rising local radio revenues, forecast in Q2 to be up 2 per cent year on year, we anticipate that our Radio GB divisional revenue in the second quarter will be 26 per cent up on the same period last year, in line with our forecasts. Radio GB revenue for the first six months of 2014 is consequently expected to be up 18 per cent on last year.
Radio Ireland revenues grew in the first quarter of 2014 with an increase of 6 per cent (9 per cent on a local currency basis) representing an outperformance against the market which was estimated to be up by around 4 per cent (in local currency) in the same period. We expect positive market conditions in Q2 (market up around 1 per cent), to result in a revenue increase of 4 per cent (7 per cent on a local currency basis) in this period. As a result, Radio Ireland revenue for the first half of 2014 is anticipated to be up 5 per cent (8 per cent on a local currency basis) on the same period last year.
In a statement, UTV Media commented: “The better trading conditions in H2 2013 have continued, as anticipated, into 2014 with Group revenue growth of 7 per cent in the first three months of the year. We are pleased to be able to report that these positive market conditions are continuing into Q2 and, along with the revenue boost arising from the FIFA World Cup, we expect to see Group revenue increase by 18 per cent in the second quarter of 2014 and by 12 per cent for the first six months, in line with expectations.”
“It is encouraging that revenue growth has returned to the Irish television market as we progress our plans to launch a new television channel in Ireland in 2015. With ITV Studios programming providing the spine of the schedule, we are well advanced in acquiring additional attractive programming and in developing high quality local programming which will appeal to Irish viewers. We have appointed key personnel with proven track records in the Irish marketplace who will be supported by our already strong media team and existing base of high quality media assets in Ireland. We remain confident of the opportunity that the new channel offers us to create significant long term shareholder value.”