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Utv Plc (UTV)

  Print      Mail a friend       Annual reports

Monday 19 March, 2007

Utv Plc

Final Results


UTV plc

("UTV" or "the Company" or "the Group")

Preliminary Results

for the year ended 31 December 2006

Financial Highlights

  * Group revenue up 22% at £113.6m (2005: £92.7m) reflecting the full year
    impact of The Wireless Group plc, now referred to as Radio GB
   
  * Group operating profit up 6% at £27.4m (2005: £25.8m) before charging
    start-up losses of £2.6m (2005 : £0.9m) in respect of our two new radio
    stations in Belfast and Edinburgh
   
  * Radio operating profit up 52% at £14.6m (2005 : £9.6m) before charging
    start-up losses of £2.6m (2005 : £0.9m) in respect of our new radio
    stations in Belfast and Edinburgh
   
  * Television operating profit down 24% at £11.7m (2005 : £15.4m)
   
  * New Media operating profit up 31% at £1.1m (2005 : £0.8m)
   
  * Diluted adjusted earnings per share down by 15% to 23.08p (2005 : 27.14p)
   
  * An 8.00p final dividend resulting in a full year dividend of 13.00p (2005 :
    12.50p), an increase of 4%.
   
  * Net debt reduced by £8.6m to £117.6m (2005 : £126.2m)
   
Operational Highlights

  * Television advertising revenue reduced by 9% outperforming the ITV network
    which reduced by 12%
   
  * Radio advertising revenue in Great Britain grew by 6% on a like for like
    basis, compared to a market decline of 5%
   
  * Radio advertising in Ireland grew by 12% on a like for like basis
   
  * New Media revenues grew by 17%
   
John McCann, Group Chief Executive, UTV, said:

"Our strategy of developing media interests outside our TV business through the
acquisition of radio assets in both GB and Ireland has resulted in our radio
divisions' contributing the larger proportion of the Group's revenue and
operating profit for the first time.

"Our strong regional TV advertising performance has once again resulted in an
outperformance when compared to ITV1. We have had a positive start to 2007 and
I remain confident of our ability to continue to outperform against a backdrop
of difficult trading conditions in the GB advertising market."

 

Key dates:

  * 30 March 2007: record date for payment of dividends
   
  * 25 May 2007 : date of Annual General Meeting
   
  * 11 June 2007 : payment of dividends
   
For further information contact:

Powerscourt +44 20 7236 5615

Rory Godson +44 7909926020

UTV plc

John McCann Group Chief Executive +44 28 9026 2202

Paul O'Brien Group Finance Director +44 28 9026 2098

Orla McKibbin Head of Press and PR +44 28 9026 2188

Chairman's Statement

Introduction

Your company again outperformed its peer groups in what was a challenging year
for the media industry as a whole. Our Irish radio operations enjoyed
like-for-like revenue growth of 12% while in Great Britain our like-for-like
radio revenue increased by 6% compared to a market decline of 5%. Our
television revenue was down by 7% driven by a decline in advertising revenue of
9% which compared to a 12% fall in ITV network revenue. Our new media division
improved its revenue by 17%. In addition to meeting the broader challenges of
network and market revenue declines in UK television and radio, your company
also completed the successful integration of the former Wireless Group so that,
for the first time, total radio operating profit, even after allowing for
start-up losses at our two new radio stations, exceeded that of television. The
continuing ability of your company to assimilate new assets while improving
operational performance during difficult trading conditions, augurs well for
the future.

Results and dividend

Operating profit, including associates, before exceptional items but after
radio start-up losses of £2.6m (2005 : £0.9m), was broadly flat at £24.8m (2005
: £24.9m). Increases of £3.3m and £0.3m in radio and new media operating
profits to £12.0m (2005 : £8.7m) and £1.1m (2005 : £0.8m) respectively,
substantially offset a £3.7m reduction in television operating profit to £11.7m
(2005 : £15.4m). With a net interest charge of £8.0m (2005 : £4.5m), and no
foreign exchange gains (2005 : £0.4m), group profit before exceptional items
and taxation was down by £4m to £16.8m (2005 : £20.8m).

Exceptional items include an exceptional tax gain of £20.2m relating to the
prior year tax losses now being available against future years' earnings in our
GB radio operation and brought into the Group's Balance Sheet as a deferred tax
asset and a release of the deferred tax liability associated with an impairment
charge. This impairment charge of £20.2m arises from our review of the carrying
value of all Group assets, reflecting market conditions in GB. We incurred
costs relating to aborted transactions of £0.5m. After ordinary taxation of £
3.6m (2005 : £5.1m) profit for the year was £12.7m (2005 : £14.5m) of which £
12.3m (2005 : £14.4m) was attributable to shareholders. Diluted earnings per
share adjusted for exceptional items were down 15% at 23.08p (2005 : 27.14p).

Your Board recommends a final dividend of [8.00p] (2005 : 7.75p) which
represents a [3.2%] increase over last year making a total for the year of
[13.00p] (2005 :12.50p), an increase of [4%]. The final dividend will be paid
on 11 June 2007 to all shareholders on the Register at the close of business on
30 March 2007. The Annual General Meeting will be held on 25 May 2007.

Radio

Our radio division generated £61.7m (2005 : £38.9m) of revenue in the period,
54% of group turnover. Radio recorded an operating profit before exceptional
items of £14.6m (2005 : £9.6m) before accounting for start-up losses of £2.6m
(2005: £0.9m) in our new radio stations in Edinburgh and Belfast.

We successfully integrated our GB radio assets into the group and embarked upon
a programme to improve the overall performance of talkSPORT and the local radio
stations. Against the backdrop of a declining UK radio market, talkSPORT's
performance was particularly impressive with revenue up by 18% over the
previous year. We invested much of that additional revenue in promoting the
brand and enhancing the production quality of our output and this drive towards
improving the product was evident also in our winning bid to gain Premiership
football rights for the three years commencing 2007/08. The early fruits of our
new long term development plan are also evident in the outperformance of the
market by our local radio stations, which recorded a 1.6% decrease in revenue
over the previous year against a market fall of 5%.

Our GB radio stations recorded profits of £8.8m (2005 : £5.0m) before charging
start-up losses of £1.7m (2005 : £0.1m) in respect of our new radio station in
Edinburgh.

Our radio stations in Ireland continued to perform strongly, with like-for-like
advertising revenue up by 12%. Within this, national advertising growth at 18%
reflected our ability to offer larger advertisers the opportunity to market
their products to the key urban areas. This offering has the potential for
further enhancement through the development of our new radio station in Belfast
which will provide essentially an all-Ireland marketing solution to national
and multi-national advertisers. Operating profit from our Irish radio stations
was up by 26% to £5.8m (2005 : £4.6m) before charging start-up losses of £0.9m
(2005 : £0.8m) in respect of the Belfast station.

Television

The television advertising market was weak throughout 2006. The leading
commercial channel ITV1, continued to suffer from declining audience ratings
which impacted unduly upon advertising revenue through the mechanism of the
Contract Rights Renewal (CRR) undertaking. For the year as a whole, ITV network
advertising revenue was down by 12%. The impact of CRR on our advertising
revenue from GB was mitigated by our strong ratings performance in Ireland, but
we were not immune to the overall effect on the market which caused our
advertising revenue to fall by 9%. Nevertheless, this was a significant
outperformance of the network and we achieved another record share of ITV1's
advertising revenue of 2.82%. With our television revenue down by 7%, our
television operating profits before exceptional items were £11.7m (2005 : £
15.4m).

New Media

Our new media division enjoyed a 17% increase in turnover to £9.5m (2005 : £
8.1m) with broadband and telephony services continuing to be the main drivers
of this growth. Improved profitability was a key focus in the year and, even
after writing off customer acquisition costs, operating profits from this
division were up by 31% to £1.1m (2005 : £0.8m).

Prospects

We continue to outperform the market and our peer groups in the first quarter
of 2007. Advertising revenue from our radio stations in Great Britain is
expected to be 2% up in this quarter compared to an anticipated market decline
of 4%. Although the stimulus of the football World Cup will be in the
comparative revenue for the first half of 2006, the current first half will not
carry the additional marketing and production costs associated with that event
and we believe this will be broadly positive for talkSPORT's profitability in
the six months to 30 June 2007. Losses of £0.9m (2006: £0.9m) are estimated to
be incurred in the first half of 2007 at our new radio station in Edinburgh.

Our radio stations in Ireland continue to perform strongly with like-for-like
advertising revenue forecast to be up by 9% in the first 3 months of 2007.
Excellent listenership figures combined with good economic growth engender
confidence in the prospects for the year as a whole. Our Limerick station
applied for, and won, renewal of its ten year licence against a competing
application. Losses of £0.6m (2006 : £0.5m) are estimated to be incurred in the
first half of 2007 at our new radio station in Belfast.

Outperformance by our television division also continues into 2007. In the
first quarter of this year ITV network revenue is expected to be down by 9% but
strong local demand on the back of firm regional audience ratings should ensure
that our television revenue in this period is flat. We are in discussions with
ITV plc to transfer responsibility for their sales house function in Ireland
into our control from 1 April 2007. ITV plc's sales house will continue to
represent us in Great Britain.

In new media, demand for our broadband and telephony products remains strong
and we are forecasting a 24% improvement in turnover in the first three months
of 2007.

People

I have referred in this statement to your company's outperformance of its peer
groups. This outperformance has been a feature of your company's results for
some years and is made possible only through the skill, commitment and hard
work of people throughout the organisation. On your behalf, I would like to
thank the Board, management and staff for their contributions to the success of
your company.

John B McGuckian

Chairman

19 March 2007

Group Income Statement

For the year ended 31 December 2006

                                      Except                     Except         
                                                                                
                                      -ional    Total            -ional    Total
                                                                                
                          Results      Items  Results Results     Items  Results
                                                                                
                    Notes 2006          2006     2006 2005         2005     2005
                                                                                
                          £000          £000     £000 £000         £000     £000
                                                                                
Continuing                                                                      
operations                                                                      
                                                                                
Revenue                 2  113,583         -  113,583    92,741       -   92,741
                                                                                
Operating costs           (88,968)         - (88,968)  (67,934)       - (67,934)
                                                                                
                           -------   -------  -------   ------- -------  -------
                                                                                
Operating profit            24,615         -   24,615    24,807       -   24,807
before impairment                                                               
                                                                                
Impairment of           3        -  (14,877) (14,877)         -       -        -
intangible assets                                                               
                                                                                
                           -------   -------  -------   ------- -------  -------
                                                                                
Operating profit        2   24,615  (14,877)    9,738    24,807       -   24,807
from continuing                                                                 
operations before                                                               
tax and finance                                                                 
costs                                                                           
                                                                                
Non-operational         3        -   (5,833)  (5,833)         - (1,235)  (1,235)
exceptional costs                                                               
                                                                                
Share of results of     2      211         -      211       109       -      109
associates                                                                      
accounted for using                                                             
the equity method                                                               
                                                                                
                           -------   -------  -------   ------- -------  -------
                                                                                
Profit from                 24,826  (20,710)    4,116    24,916 (1,235)   23,681
continuing                                                                      
operations before                                                               
tax and finance                                                                 
costs                                                                           
                                                                                
Finance revenue         2      360         -      360       438       -      438
                                                                                
Finance costs           2  (8,381)         -  (8,381)   (4,941)       -  (4,941)
                                                                                
Foreign exchange                 -         -        -       413       -      413
gain                                                                            
                                                                                
                           -------   -------  -------   ------- -------  -------
                                                                                
Profit before tax           16,805  (20,710)  (3,905)    20,826 (1,235)   19,591
                                                                                
Taxation                4  (3,611)    20,186   16,575   (5,101)       -  (5,101)
                                                                                
                           -------    ------  -------   ------- -------  -------
                                                                                
Profit for the year     2   13,194     (524)   12,670    15,725 (1,235)   14,490
                                                                                
                            ------    ------   ------    ------  ------   ------
                                                                                
Attributable to:                                                                
                                                                                
Equity holders of           12,839     (524)   12,315    15,591 (1,235)   14,356
the parent                                                                      
                                                                                
Minority interests             355         -      355       134       -      134
                                                                                
                           -------   -------  -------   ------- -------  -------
                                                                                
                            13,194     (524)   12,670    15,725 (1,235)   14,490
                                                                                
                           -------   -------  -------   ------- -------  -------

Earnings per share

                                                                2006        2005
                                                                                
Diluted             5                                         22.39p      26.09p
                                                                                
Basic               5                                         22.55p      26.38p
                                                                                
Adjusted            5                                         23.25p      27.43p
                                                                                
Diluted             5                                         23.08p      27.14p
adjusted                                                                        
                                                                                
                                                         ----------- -----------

Group Statement of Recognised Income and Expense

For the year ended 31 December 2006

                                                                 2006        2005
                                                                                 
                                                    Notes        £000        £000
                                                                                 
Income and expenses recognised directly in equity                                
                                                                                 
Exchange difference on translation of foreign                 (1,703)     (1,418)
operations                                                                       
                                                                                 
Exchange difference on loans hedging net investment                 -       1,287
in foreign subsidiaries                                                          
                                                                                 
Net actuarial gain on defined benefit pension                   1,808         943
schemes                                                                          
                                                                                 
Profits/(losses) on cash flow hedges taken to                   1,698       (119)
equity                                                                           
                                                                                 
Revaluation of share of assets previously acquired                  -       1,248
in AR(UK) Limited                                                                
                                                                                 
Tax on items taken directly to or transferred from            (1,005)       (283)
equity                                                                           
                                                                                 
                                                          ----------- -----------
                                                                                 
Net income recognised directly in equity                          798       1,658
                                                                                 
Profit for the year                                     2      12,670      14,490
                                                                                 
                                                          ----------- -----------
                                                                                 
Total recognised income and expense for the year               13,468      16,148
                                                                                 
                                                          ----------- -----------
                                                                                 
Attributable to:                                                                 
                                                                                 
Equity holders of the parent                                   13,113      16,014
                                                                                 
Minority interests                                                355         134
                                                                                 
                                                          ----------- -----------
                                                                                 
Total recognised income and expense                     8      13,468      16,148
                                                                                 
                                                          ----------- -----------
                                                                                 

Group Balance Sheet

At 31 December 2006

                                                                 2006        2005
                                                                                 
ASSETS                                              Notes        £000        £000
                                                                                 
Non-current assets                                                               
                                                                                 
Property, plant and equipment                                  11,036      10,938
                                                                                 
Intangible assets                                             183,706     205,165
                                                                                 
Investments accounted for using the equity method                 116         268
                                                                                 
Other investments                                                  32          32
                                                                                 
Deferred tax asset                                             22,178       8,725
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                              217,068     225,128
                                                                                 
                                                          ----------- -----------
                                                                                 
Current assets                                                                   
                                                                                 
Inventories                                                       538         832
                                                                                 
Trade and other receivables                                    27,694      29,367
                                                                                 
Financial assets                                                1,579           -
                                                                                 
Cash and short term deposits                            7       7,897       6,470
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                               37,708      36,669
                                                                                 
                                                          ----------- -----------
                                                                                 
TOTAL ASSETS                                                  254,776     261,797
                                                                                 
                                                          ----------- -----------
                                                                                 
EQUITY AND LIABILITIES                                                           
                                                                                 
Equity attributable to equity holders of the                                     
parent                                                                           
                                                                                 
Equity share capital                                    8       8,220       7,824
                                                                                 
Treasury shares                                         8       (360)           -
                                                                                 
Foreign currency reserve                                8     (1,595)         108
                                                                                 
Cash flow hedge reserve                                 8       1,579       (119)
                                                                                 
Retained earnings                                       8      46,479      40,325
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                               54,323      48,138
                                                                                 
Minority interest                                       8         215         127
                                                                                 
                                                          ----------- -----------
                                                                                 
Total equity                                                   54,538      48,265
                                                                                 
                                                          ----------- -----------
                                                                                 
Non-current liabilities                                                          
                                                                                 
Interest bearing loans and borrowings                   7     115,352     119,935
                                                                                 
Pension liability                                               3,983       6,320
                                                                                 
Provisions                                                        992       1,176
                                                                                 
Deferred tax liabilities                                       41,081      44,646
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                              161,408     172,077
                                                                                 
                                                          ----------- -----------
                                                                                 
Current liabilities                                                              
                                                                                 
Trade and other payables                                       27,560      26,738
                                                                                 
Current portion of interest bearing loans and           7      10,131      12,736
borrowings                                                                       
                                                                                 
Tax payable                                                     1,001       1,811
                                                                                 
Provisions                                                        138         170
                                                                                 
                                                          ----------- -----------
                                                                                 
Net current liabilities                                        38,830      41,455
                                                                                 
                                                          ----------- -----------
                                                                                 
TOTAL LIABILITIES                                             200,238     213,532
                                                                                 
                                                          ----------- -----------
                                                                                 
TOTAL EQUITY AND LIABILITIES                                  254,776     261,797
                                                                                 
                                                          ----------- -----------

Group Cash Flow Statement

For the year ended 31 December 2006

                                                                 2006        2005
                                                                                 
                                                     Note        £000        £000
                                                                                 
Operating activities                                                             
                                                                                 
Group operating profit from continuing operations       2      24,615      24,807
before tax and finance costs                                                     
                                                                                 
Adjustments to reconcile group operating profit to                               
net cash flows from operating activities                                         
                                                                                 
Depreciation of property, plant and equipment                   1,939       1,746
                                                                                 
Difference between pension contributions paid and               (530)       (300)
amounts recognised in the income statement                                       
                                                                                 
Decrease in inventories                                           294           7
                                                                                 
Decrease/(increase) in trade and other receivables              1,023       (349)
                                                                                 
Increase in trade and other payables                              468       1,705
                                                                                 
Movement in provisions                                          (216)        (27)
                                                                                 
Profits from sale of property, plant and equipment               (68)        (16)
                                                                                 
                                                          ----------- -----------
                                                                                 
Cash generated from operations before exceptional              27,525      27,573
costs                                                                            
                                                                                 
Exceptional costs                                                   -     (1,105)
                                                                                 
Tax paid                                                      (2,379)     (4,338)
                                                                                 
                                                          ----------- -----------
                                                                                 
Net cash inflow from operating activities                      25,146      22,130
                                                                                 
                                                          ----------- -----------
                                                                                 
Investing activities                                                             
                                                                                 
Interest received                                                 366         431
                                                                                 
Proceeds on disposal of property, plant and                       438          56
equipment                                                                        
                                                                                 
Purchase of property, plant and equipment                     (2,351)     (1,868)
                                                                                 
Dividends received from associates                                295           -
                                                                                 
Acquisition of subsidiaries, net of cash acquired                   -   (103,811)
                                                                                 
Acquiree transaction costs settled                                  -     (5,566)
                                                                                 
Acquisition of joint ventures, net of cash acquired                 -       (366)
                                                                                 
                                                          ----------- -----------
                                                                                 
Net cash flows from investing activities                      (1,252)   (111,124)
                                                                                 
                                                          ----------- -----------
                                                                                 
Financing activities                                                             
                                                                                 
Borrowing costs                                               (7,979)     (6,557)
                                                                                 
Proceeds from exercise of share options                           396         236
                                                                                 
Acquisition of treasury shares                                  (360)           -
                                                                                 
Dividends paid to equity shareholders                         (6,964)     (6,395)
                                                                                 
Dividends paid to minority interests                            (267)            
                                                                                 
Repayment of borrowings                                      (36,341)    (35,912)
                                                                                 
Proceeds from borrowings                                       29,383     136,278
                                                                                 
Repayment of finance leases                                     (107)           -
                                                                                 
                                                          ----------- -----------
                                                                                 
Net cash flows used in financing activities                  (22,239)      87,650
                                                                                 
                                                          ----------- -----------
                                                                                 
Net increase/(decrease) in cash and cash                        1,655     (1,344)
equivalents                                                                      
                                                                                 
Net foreign exchange differences                                 (34)        (87)
                                                                                 
Cash and cash equivalents at 1 January                          6,276       7,707
                                                                                 
                                                          ----------- -----------
                                                                                 
Cash and cash equivalents at 31 December                7       7,897       6,276
                                                                                 
                                                          ----------- -----------

Notes to the Group Financial Statements

For the year ended 31 December 2006

1. Basis of preparation

The Group's financial statements consolidate those of UTV plc, and its
subsidiaries (together referred to as the "Group") and the Group's interest in
associates and jointly controlled entities.

As required by EU law the Group's accounts have been prepared in accordance
with International Financial Reporting Standards adopted by the International
Accounting Standards Board (IASB) and interpretations issued by the
International Financial Reporting Interpretations Committee of the IASB as
adopted by the EU ("IFRS"). The accounts are principally prepared on the
historical cost basis except where other bases are applied under the Group's
accounting policies.

The financial information set out herein does not constitute the Company's
statutory report and accounts for the year ended 31 December 2006.

2. Revenue and segmental analysis

Revenue represents the amounts derived from the provision of goods and services
which fall within the Group's ordinary activities, stated net of value added
tax. Revenue from Radio and Television activities is generated from advertising
and sponsorship. Revenue from New Media is generated from the provision of
internet services. The amount of revenue derived from the sale of goods or
other activities is immaterial and therefore has not been separately disclosed.
Transfer prices between business segments are set on an arm's length basis in a
manner similar to transactions to third parties.

The Group's primary reporting format is business segments and its secondary
format is geographical segments. The operating businesses are organised and
managed separately according to the nature of the services provided, with each
segment representing a strategic business unit that offers different services
and serves different markets.

(a) Business segments

The Group operates in four principal areas of activity - commercial television,
radio in GB, radio in Ireland and new media - all of which are continuing
operations. The following tables present revenue and profit information and
certain asset and liability information regarding the Group's business segments
for the years ended 31 December 2006 and 2005.

Revenue

Year ended 31 December 2006                                                    
                                                                               
                               Radio GB      Radio Television      New    Total
                                           Ireland               Media         
                                                                               
                                   £000       £000       £000     £000     £000
                                                                               
Sales to third parties           45,741     15,937     42,410    9,495  113,583
                                                                               
Intersegmental sales                997        591      1,177       60    2,825
                                                                               
                                -------    -------    -------  ------- --------
                                                                               
Total segmental revenue          46,738     16,528     43,587    9,555  116,408
                                                                               
                                -------    -------    -------  ------- --------
                                                                               
Year ended 31 December 2005                                                    
                                                                               
                               Radio GB      Radio Television      New    Total
                                           Ireland               Media         
                                                                               
                                   £000       £000       £000     £000     £000
                                                                               
Sales to third parties           25,112     13,738     45,752    8,139   92,741
                                                                               
Intersegmental sales                745        482        608       60    1,895
                                                                               
                                -------    -------    -------  ------- --------
                                                                               
Total segmental revenue          25,857     14,220     46,360    8,199   94,636
                                                                               
                                -------    -------    -------  ------- --------

Results

Year ended 31 December 2006                                                    
                                                                               
                               Radio GB      Radio Television      New    Total
                                           Ireland               Media         
                                                                               
                                   £000       £000       £000     £000     £000
                                                                               
Operating profit for the year     6,911      4,907     11,741    1,056   24,615
                                                                               
Share of results of associates      211          -          -        -      211
                                                                               
                                -------    -------    -------  -------  -------
                                                                               
                                  7,122      4,907     11,741    1,056   24,826
                                                                               
                                -------    -------    -------  -------         
                                                                               
Exceptional costs                                                      (20,710)
                                                                               
Net finance costs                                                       (8,021)
                                                                               
                                                                        -------
                                                                               
Profit before tax                                                       (3,905)
                                                                               
Income tax credit                                                        16,575
                                                                               
                                                                        -------
                                                                               
Profit for the year                                                      12,670
                                                                               
                                                                        -------

Year ended 31 December 2005                                                    
                                                                               
                                Radio GB      Radio Television      New   Total
                                            Ireland               Media        
                                                                               
                                    £000       £000       £000     £000    £000
                                                                               
Operating profit for the year      4,799      3,845     15,359      804  24,807
                                                                               
Share of results of associates       109          -          -        -     109
                                                                               
                                 -------    -------    -------  ------- -------
                                                                               
                                   4,908      3,845     15,359      804  24,916
                                                                               
                                 -------    -------    -------  -------        
                                                                               
Exceptional costs                                                       (1,235)
                                                                               
Net finance costs                                                       (4,503)
                                                                               
Foreign exchange gain                                                       413
                                                                               
                                                                        -------
                                                                               
Profit before tax                                                        19,591
                                                                               
Income tax expense                                                      (5,101)
                                                                               
                                                                        -------
                                                                               
Profit for the year                                                      14,490
                                                                               
                                                                        -------

3. Exceptional items

                                                                 2006        2005
                                                                                 
                                                                 £000        £000
                                                                                 
Impairment of intangible assets                                14,877           -
                                                                                 
Adjustment to goodwill                                          5,289           -
                                                                                 
Costs associated with aborted transactions                        544           -
                                                                                 
Fundamental restructuring costs                                     -       1,235
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                               20,710       1,235
                                                                                 
                                                          ----------- -----------

In 2006, UTV has been in discussions with respect to a potential merger and
also considered potential transactions in the Republic of Ireland. Costs were
incurred in considering the feasibility of and the potential to finance these
aborted transactions.

In 2005, following the acquisition of The Wireless Group plc, the staff
structure within the UTV Group was reviewed and the fundamental rationalisation
resulted in redundancy costs and other related costs.

4. Taxation

(a) Tax on profit on ordinary activities

                                                                 2006        2005
                                                                                 
                                                                 £000        £000
                                                                                 
Current income tax:                                                              
                                                                                 
UK corporation tax on profits for the year                        794       3,126
                                                                                 
Adjustments in respect to previous years                         (82)        (75)
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                                  712       3,051
                                                                                 
Foreign tax:                                                                     
                                                                                 
ROI corporation tax on profits for the year                       715         639
                                                                                 
Adjustments in respect to previous years                            -           -
                                                                                 
                                                          ----------- -----------
                                                                                 
Total current tax                                               1,427       3,690
                                                                                 
Deferred tax:                                                                    
                                                                                 
Origination and reversal of timing differences                  2,259       1,418
                                                                                 
Adjustments in respect of previous periods                       (75)         (7)
                                                                                 
                                                          ----------- -----------
                                                                                 
Tax charge in the income statement                              3,611       5,101
                                                                                 
                                                          ----------- -----------

(b) Exceptional credit

During the year an agreement was reached with HMRC that tax losses carried
forward in UTV Radio GB Limited (formerly the Wireless Group plc) would be
available to the Group going forward. The net amount of these losses was
recognised as a deferred tax asset on the Group balance sheet and resulted in a
tax credit of £16,166,000. In addition to this, £4,020,000 was released from
the deferred tax liability on the recognition of an impairment of intangible
assets.

5. Earnings per share

Basic earnings per share is calculated based on the profit for the financial
year attributable to equity holders of the parent and on the weighted average
number of shares in issue during the period.

Adjusted earnings per share is calculated based on the profit for the financial
year attributable to equity holders of the parent adjusted for the exceptional
items and non-operational foreign exchange recorded in the year. This
calculation uses the weighted average number of shares in issue during the
period.

Diluted earnings per share is calculated based on profit for the financial year
attributable to equity holders of the parent. The weighted average number of
shares is adjusted to reflect the dilutive potential of the Share Option
Schemes.

Diluted adjusted earnings per share is calculated based on profit for the
financial year attributable to equity holders of the parent before exceptional
items and foreign exchange. The weighted average number of shares is adjusted
to reflect the dilutive potential of the Share Option Schemes.

The following reflects the income and share data used in the basic, adjusted,
diluted and diluted adjusted earnings per share calculations:

Net profit                                                       2006        2005
                                                                                 
                                                                 £000        £000
                                                                                 
Net profit attributable to equity holders                      12,315      14,356
                                                                                 
Exceptional costs                                                 524       1,235
                                                                                 
Foreign exchange gains                                              -       (413)
                                                                                 
Taxation relating to above items                                (142)       (247)
                                                                                 
                                                          ----------- -----------
                                                                                 
Net profit attributable to ordinary shareholders for           12,697      14,931
adjusted and diluted earnings per share                                          
                                                                                 
                                                          ----------- -----------
                                                                                 
Weighted average number of shares                                                
                                                                                 
                                                                 2006        2005
                                                                                 
                                                            thousands   thousands
                                                                                 
Weighted average number of shares for basic and adjusted       54,601      54,423
earnings per share                                                               
                                                                                 
Effect of dilution of the share options                           407         597
                                                                                 
                                                          ----------- -----------
                                                                                 
Adjusted weighted average number of ordinary shares for        55,008      55,020
diluted earnings per share                                                       
                                                                                 
                                                          ----------- -----------

Earnings per share

                                                                 2006        2005
                                                                                 
Diluted                                                        22.39p      26.09p
                                                                                 
                                                          ----------- -----------
                                                                                 
Basic                                                          22.55p      26.38p
                                                                                 
                                                          ----------- -----------
                                                                                 
Adjusted                                                       23.25p      27.43p
                                                                                 
                                                          ----------- -----------
                                                                                 
Diluted adjusted                                               23.08p      27.14p
                                                                                 
                                                          ----------- -----------

6. Dividends

                                                                 2006        2005
                                                                                 
                                                                 £000        £000
                                                                                 
Equity dividends on ordinary shares                                              
                                                                                 
Declared and paid during the year                                                
                                                                                 
Final for 2005: 7.75p (2004: 7.00p)                             4,227       3,803
                                                                                 
Interim for 2006: 5.00p (2005: 4.75p)                           2,737       2,592
                                                                                 
                                                               ------      ------
                                                                                 
Dividends paid                                                  6,964       6,395
                                                                                 
                                                          ----------- -----------
                                                                                 
Proposed for approval at Annual General Meeting                                  
                                                                                 
(not recognised as a liability at 31 December)                                   
                                                                                 
Final dividend for 2006: 8.00p (2005: 7.75p)                    4,380            
                                                                                 
                                                          -----------            
                                                                                 

7. Net debt

                                                                 2006        2005
                                                                                 
                                                                 £000        £000
                                                                                 
Current                                                                          
                                                                                 
Cash and cash equivalents                                       7,897       6,470
                                                                                 
Bank overdrafts                                                     -       (194)
                                                                                 
Current instalments due on bank loans                        (10,131)    (12,410)
                                                                                 
Current obligations under finance leases and hire                   -        (13)
purchase contracts                                                               
                                                                                 
Interest rate swaps                                                 -       (119)
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                              (2,234)     (6,266)
                                                                                 
                                                          ----------- -----------
                                                                                 
Non-current                                                                      
                                                                                 
Non-current instalments due on bank loans                   (115,352)   (119,841)
                                                                                 
Non-current obligations under finance leases and hire               -        (94)
purchase contracts                                                               
                                                                                 
                                                          ----------- -----------
                                                                                 
                                                            (115,352)   (119,935)
                                                                                 
                                                          ----------- -----------
                                                                                 
Net debt                                                    (117,586)   (126,201)
                                                                                 
                                                          ----------- -----------

The borrowings at 31 December 2006 are stated net of £1,152,000 (2005: £
1,574,000) of deferred financing costs.

8. Reconciliation of movements in equity

                                                        Cash                   
                                                                               
                            Equity           Foreign    flow                   
                                                                               
                             share Treasury currency   hedge    Ret'd  S'holder
                                                                               
                           capital   shares  reserve reserve earnings    equity
                                                                               
                              £000     £000     £000    £000     £000      £000
                                                                               
Balance at 1 January 2005    6,584        -      239       -   29,767    36,590
                                                                               
Exercise of share options      236        -        -       -        -       236
                                                                               
Shares issued on             1,004        -        -       -        -     1,004
acquisition of subsidiary                                                      
                                                                               
Total recognised income          -        -    (131)   (119)   16,264    16,014
and expense in the year                                                        
                                                                               
Dividends                        -        -        -       -  (6,395)   (6,395)
                                                                               
Reserves on the wind up of       -        -        -       -      689       689
The Wireless Group                                                             
Employee Benefits Trust                                                        
                                                                               
                            ------   ------   ------  ------   ------    ------
                                                                               
Balance at 31 December       7,824        -      108   (119)   40,325    48,138
2005                                                                           
                                                                               
Exercise of share options      396        -        -       -        -       396
                                                                               
Acquisition of treasury          -    (360)        -       -        -     (360)
shares                                                                         
                                                                               
Total recognised income          -        -  (1,703)   1,698   13,118    13,113
and expense in the year                                                        
                                                                               
Dividends paid to equity         -        -        -       -  (6,964)   (6,964)
shareholders                                                                   
                                                                               
                            ------   ------   ------  ------   ------    ------
                                                                               
Balance at 31 December       8,220    (360)  (1,595)   1,579   46,479    54,323
2006                                                                           
                                                                               
                            ------   ------   ------  ------   ------    ------

                                                  Shareholder Minority         
                                                                               
                                                       equity interest    Total
                                                                               
                                                         £000     £000     £000
                                                                               
Balance at 1 January 2005                              36,590      (7)   36,583
                                                                               
Exercise of share options                                 236        -      236
                                                                               
Shares issued on acquisition of subsidiary              1,004        -    1,004
                                                                               
Total recognised income and expense in the year        16,014      134   16,148
                                                                               
Dividends                                             (6,395)        -  (6,395)
                                                                               
Reserves on the wind up of The Wireless Group             689        -      689
Employee Benefits Trust                                                        
                                                                               
                                                      -------  -------  -------
                                                                               
Balance at 31 December 2005                            48,138      127   48,265
                                                                               
Exercise of share options                                 396        -      396
                                                                               
Acquisition of treasury shares                          (360)        -    (360)
                                                                               
Total recognised income and expense in the year        13,113      355   13,468
                                                                               
Dividends paid to minority interests                        -    (267)    (267)
                                                                               
Dividends paid to equity shareholders                 (6,964)        -  (6,964)
                                                                               
                                                      -------  -------  -------
                                                                               
Balance at 31 December 2006                            54,323      215   54,538
                                                                               
                                                      -------  -------  -------

This summary has been approved by our Directors for release to the Press today
19 March 2007 and the full printed Annual Report and Accounts will be posted to
Shareholders and Stock Exchanges on 27 April 2007. Copies will be available to
the public at the Company's registered office Ormeau Road, Belfast BT7 1EB from
that date.