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UTV Media PLC (UTV)

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Tuesday 26 August, 2008

UTV Media PLC

Half-yearly Report


UTV Media plc

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

Interim Results

for the six months ended 30 June 2008

Financial highlights:

  * Group turnover up 8% to £62.0m (2007 : £57.2m)
   
  * Pre-tax profits before exceptional items up by 12% to £10.4m (2007 : £9.3m)
   
  * Increase in non-television operating profits up 32% to £9.9m (2007 : £7.5m)
   
  * Radio operating profit up 31% to £9.0m (2007 : £6.8m)
   
  * Television operating profits down 15% to £4.7m (2007 : £5.5m)
   
  * New Media operating profits up by 51% to £0.9m (2007 : £0.6m)
   
  * Interim dividend of 3.30p (2007: 5.20p).
   
Operational Highlights

  * Radio revenue up by 15% to £36.4m (2007 : £31.5m)
   
  * GB Radio revenue up by 5% to £25.0m (2007 : £23.7m) with talkSPORT revenue
    up by 18% to £12.1m (2007 : £10.2m)
   
  * Irish radio revenue up by 47% to £11.4m (2007 : £7.8m) with like for like
    revenue growing by 24% to £9.4m (2007 : £7.8m)
   
  * Television advertising revenue reduced by 4% to £18.3m (2007 : £19.1m)
   
  * New media revenue up by 15% from £5.0m to £5.8m
   
  * Acquisition of FM104 the leading independent commercial radio station in
    Dublin
   
  * Acquisition of Tibus a leading Irish web development company
   
John McCann, Group Chief Executive, UTV Media plc, said:

"Good news stories about media companies are rare at the moment, however the
group is pleased to announce significant growth in both turnover and pre-tax
profits in the first half of 2008. I am particularly pleased to report strong
performances in both our radio and new media divisions. This is further
indication that the group's decision to diversify away from a pure television
offering was indeed the right one. This strategy has been key to protecting the
group against the current market volatility and leaves us well placed to take
advantage of opportunities arising from an upturn.

"While advertising remains a difficult environment, we expect to markedly
outperform our peer group over the next quarter. With a strong management
structure and clear strategic vision, we are confident in the group's ability
to deliver robust revenue and profit figures in the face of uncertain macro
economic conditions."

Key Dates 

  * 5 September 2008 : record date for payment of dividends
   
  * 6 October 2008 : payment of dividends
   

For further information contact:

Maitland +44 (0) 20 7379 5151
Anthony Silverman
Rowan Brown

UTV Media plc
John McCann Group Chief Executive +44 (0) 28 9026 2202
Jim Downey Group Finance Director +44 (0) 28 9026 2176
Orla McKibbin Head of Communications +44 (0) 28 9026 2188


Chairman's Statement

Background

It is pleasing to be able to report a further improvement in pre-tax profits,
before exceptional items, which have risen by 12% to £10.4m (2007 : £9.3m) in
the first six months of the year.

Those six months were dominated by headlines about the credit crunch, sharply
increasing commodity prices and fears about the health of the economy. Media
analysts focused upon the impact of these factors on advertising revenue and
especially on media companies with operational and financial gearing.

As media share prices were downgraded, we re-affirmed the continuing out
performance of our trading in an Interim Management Statement released on 16
May 2008. Nevertheless, in the light of investor concerns about high financial
gearing, we decided that, on balance, it would be prudent to reduce our debt
levels through a rights issue and to accelerate the process of refinancing. The
rights issue, which raised £49.9m, and the re-financing were undertaken in the
most volatile of markets but were successfully concluded by the middle of July,
securing debt funding through until 2013.

Debt funding was used to finance our strategy of diversifying away from a pure
television business. The merits of that strategy are evident in today's results
which show a 32% increase in non-television operating profits to £9.9m (2007 :
£7.5m) compared to a 15% decline in television operating profits to £4.7m (2007
: £5.5m).

The scale of the transformation in your company's activities is even more
marked when reference is made back to the first six months of the year 2000
when television contributed £6.9m of operating profits, our fledgling new media
business incurred losses of £0.3m and our radio business was yet to come into
existence. Despite a £2.2m reduction in television operating profit, earnings
per share increased by 58% from 8.68p to 13.75p over that 8 year period.

I have taken the time to reflect upon the changing nature of the group because
in current times, where debt tends to be regarded as intrinsically bad, it is
easy to forget that in recent years the continued growth and success of your
company was founded upon acquisition, which, until this year, was entirely
funded by debt, without recourse to any additional shareholder funding. The
sudden and dramatic upheaval in the credit markets, and the deterioration in
the economy, have prompted us to re-balance equity and debt, but the quality of
the earnings now generated through the debt facility continues to enable us to
create long-term shareholder value.

Results

Group turnover in the first half was up by 8% to £62.0m (2007 : £57.2m).
Operating profit, including associates, before exceptional items was up by 12%
to £14.6m (2007 : £13.0m), with radio operating profit climbing by 31% to £9.0m
(2007 : £6.8m). New media operating profit also jumped by 51% to £0.9m (2007 :
£0.6m) but television operating profit was down by 15% to £4.7m (2007 : £5.5m).
After net interest charges of £4.2m (2007 : £3.7m), pre-tax profits before
exceptional items were up by 12% to £10.4m (2007 : £9.3m).

Dividend

Your Board has operated a progressive dividend policy which, in the period of
acquisition between 2000 and 2007, has seen dividends grow by 55%. We continue
to place a healthy dividend at the centre of our efforts to drive shareholder
value. Nevertheless, we are mindful that in uncertain economic conditions and
having just raised equity from our shareholders, we should be prudent in
conserving cash in so far as that is consistent with our broader objectives.
Therefore, we have adopted a policy which would incorporate a dividend cover
ratio in the range 1.75 - 2.0 times. We are declaring an interim dividend of
3.30p which will be paid on 6 October 2008 to all shareholders on the Register
at the close of business on 5 September 2008.

Radio

Our radio business performed strongly in the first half, with revenue up by 15%
to £36.4m (2007 : £31.5m). In Ireland, our radio revenue was up by 47% to £
11.4m (2007 : £7.8m) with like for like revenue growing by 24% to £9.6m (2007 :
£7.8m). Like for like revenue growth was also robust in local currency,
increasing by 9% in the period. Our new radio station in Belfast, U105,
continued to make good progress and losses were down from £0.4m to £0.3m. With
strong revenue growth, reduced losses at U105, and the acquisition of FM104 in
Dublin on 10 April 2008, operating profits from our Irish radio division were
up by over 65% to £3.6m (2007 : £2.2m).

Our GB radio division also performed well with revenue up by 5% to £25.0m (2007
: £23.7m) compared to the total radio market in the UK being down by 3%.
talkSPORT's performance was particularly good with revenue up by 18% to £12.1m
(2007 : £10.2m). Revenue at our local radio stations was softer, recording a 5%
decrease to £12.9m (2007 : £13.5m), which was broadly in line with the local
radio market across the UK.

Losses at our new radio station in Edinburgh reduced from £0.9m to £0.6m, in
line with a plan to break even by the end of 2009. Operating profits from our
GB radio division were up by 15% to £5.4m (2007 : £4.7m).

Television

Our television division continued to be linked to the fortunes of ITV1 where a
weak marketplace coupled with the effects of Contract Rights Renewal resulted
in a 3% decline in advertising revenue. Over the last few years, we have
consistently outperformed ITV1 on an annual basis, increasing our share of
ITV1's revenues from 1.91% in the first six months of 2000 to 2.91% in the
first six months of 2008. Despite this, we have recorded quarters of
underperformance and this was the case in the period under review when our
advertising revenue reduced by 4% to £18.3m (2007 : £19.1m). As I outline
below, this underperformance is expected to be reversed in the third quarter.
Television operating profits were down from £5.5m to £4.7m in the first half.

New Media

Our strategic review of this division in 2007, caused us to focus more on
content delivery. As a result, on 12 February 2008, we purchased Tibus, a local
company specialising in developing websites for a wide range of customers
across Ireland. We also put greater emphasis on achieving higher margins in
broadband and telephony services and exited some lower yielding contracts.
Revenue was up by 15% from £5.0m to £5.8m and operating profits were up by 51%
to £0.9m (2008 : £0.6m) in the first six months.

Prospects

Your company continues to perform well in an economic environment which is
challenging. In GB radio, our advertising revenue in the third quarter is
expected to be flat compared to an industry decline of 9%.

In Irish radio, our advertising revenue in the third quarter is forecast to be
up by 66% and by 17% on a like for like basis. In local currency this like for
like growth is expected to be 1% in the three months to 30 September 2008.

During this period, the television advertising market in the UK is expected to
be down by 9%, with ITV1 predicted to be down by 13% in the quarter. Our
television advertising revenue is also expected to be down but we will
significantly outperform our peers with an anticipated 5% reduction in the
current three months. Our new media division is also expected to perform well
with forecast revenue growth of 15% in the quarter.

With such considerable uncertainty about global and national economies, it is
difficult to predict the rest of the year with any degree of confidence.
However, while we are not immune to the chill economic winds, we are confident
of our ability to extract maximum value from the assets at our disposal and to
continue to outperform our peer groups in the various markets in which we
operate.

John B McGuckian
Chairman
26 August 2008

Risks and uncertainties

The 2007 Annual Report sets out the most significant risk factors relating to
UTV's operations in the Company's judgement at the time of that report. UTV
does not consider that these principal risks and uncertainties have changed.
However additional risks and uncertainties not currently known to UTV, or that
UTV does not currently deem material, may also have an adverse effect on its
business.

With respect to the risks and uncertainties identified within the Annual
Report, the Chairman's statement highlights those risks and uncertainties that
will have significant impact throughout 2008.



Group Income Statement
for the six months ended 30 June 2008

                             Results                          Results                     
                              before                           before                     
                         Exceptional Exceptional          Exceptional Exceptional         
                               Items       Items    Total       Items       Items    Total
                                  30          30       30          30          30       30
                                June        June     June        June        June     June
                   Notes        2008        2008     2008        2007        2007     2007
                                £000        £000     £000        £000        £000     £000
                                                                                          
Continuing                                                                                
operations                                                                                
                                                                                          
Revenue                3      62,019           -   62,019      57,178           -   57,178
                                                                                          
Operating costs             (47,560)           - (47,560)    (44,304)       (307) (44,611)
                                                                                          
                              ------      ------   ------      ------      ------   ------
                                                                                          
Operating profit       3      14,459           -   14,459      12,874       (307)   12,567
from continuing                                                                           
operations before                                                                         
tax and finance                                                                           
costs                                                                                     
                                                                                          
Exceptional costs      4           -       (547)    (547)           -           -        -
                                                                                          
Share of results of              101           -      101         116           -      116
associates accounted                                                                      
for using the equity                                                                      
method                                                                                    
                                                                                          
                              ------      ------   ------      ------      ------   ------
                                                                                          
Profit from continuing        14,560       (547)   14,013      12,990       (307)   12,683
operations before tax                                                                     
and finance costs                                                                         
                                                                                          
Finance revenue                  188           -      188         534           -      534
                                                                                          
Finance costs                (4,459)           -  (4,459)     (4,265)           -  (4,265)
                                                                                          
Foreign exchange gain             78           -       78          27           -       27
                                                                                          
                              ------      ------   ------      ------      ------   ------
                                                                                          
Profit before tax             10,367       (547)    9,820       9,286       (307)    8,979
                                                                                          
Taxation                     (2,313)         153  (2,160)     (2,212)       1,480    (732)
                                                                                          
                              ------      ------   ------      ------      ------   ------
                                                                                          
Profit for the period          8,054       (394)    7,660       7,074       1,173    8,247
                                                                                          
                             -------     -------  -------     -------     -------  -------
                                                                                          
Attributable to:                                                                          
                                                                                          
Equity holders of the          7,923       (394)    7,529       7,044       1,173    8,217
parent                                                                                    
                                                                                          
Minority interests               131           -      131          30           -       30
                                                                                          
                              ------      ------   ------      ------      ------   ------
                                                                                          
                               8,054       (394)    7,660       7,074       1,173    8,247
                                                                                          
                             -------     -------  -------     -------     ------- --------

                                                                2008       2007
                                                                               
Earnings per share                                                             
                                                                               
Diluted                            6                          13.06p     14.89p
                                                                               
Basic                              6                          13.08p     15.00p
                                                                               
Adjusted                           6                          13.77p     12.86p
                                                                               
Diluted adjusted                   6                          13.75p     12.76p
                                                                               
                                                             -------    -------
                                                                               
                                                                £000       £000
                                                                               
Dividends                                                                      
                                                                               
Declared and paid during the       5                                           
period                                                                         
                                                                               
8.30p per share (2007: 8.00p)                                  4,759      4,384
                                                                               
                                                             -------    -------



Group Statement of Recognised Income and Expense
for the six months ended 30 June 2008

                                                                   30        30
                                                                 June      June
                                                      Note       2008      2007
                                                                 £000      £000
                                                                               
Income and expenses recognised directly in equity                              
                                                                               
Exchange difference on translation of foreign                   2,964        29
operations                                                                     
                                                                               
Net actuarial (loss)/gain on defined benefit                  (3,640)     5,520
pension schemes                                                                
                                                                               
Profit on cash flow hedges taken to equity                        970     1,133
                                                                               
Tax on items taken directly to or transferred from                577   (1,715)
equity                                                                         
                                                                               
                                                              -------   -------
                                                                               
Net income recognised directly to equity                          871     4,967
                                                                               
Profit for the period                                           7,660     8,247
                                                                               
                                                              -------   -------
                                                                               
Total recognised income and expense                             8,531    13,214
                                                                               
                                                              -------   -------
                                                                               
Attributable to:                                                               
                                                                               
Equity holders of the parent                            12      8,400    13,184
                                                                               
Minority interests                                      12        131        30
                                                                               
                                                              -------   -------
                                                                               
                                                        12      8,531    13,214
                                                                               
                                                              -------   -------


Group Balance Sheet
as at 30 June 2008

                                                            30      30       31
                                                          June    June December
                                              Notes       2008    2007     2007
                                                          £000    £000     £000
                                                                               
ASSETS                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Property, plant and equipment                     7     10,589  10,626   10,452
                                                                               
Intangible assets                                      251,598 184,532  189,628
                                                                               
Investments accounted for using the equity method          298     197      198
                                                                               
Other investments                                          300      32      300
                                                                               
Deferred tax asset                                      16,078  18,634   17,060
                                                                               
Pension surplus                                              -   1,842        -
                                                                               
                                                       ------- -------  -------
                                                                               
                                                       278,863 215,863  217,638
                                                                               
                                                       ------- -------  -------
                                                                               
Current assets                                                                 
                                                                               
Inventories                                                480     700      493
                                                                               
Trade and other receivables                             28,658  25,839   27,931
                                                                               
Financial assets                                         1,872   2,712      902
                                                                               
Cash and short term deposits                             8,144   5,509   10,237
                                                                               
                                                       ------- -------  -------
                                                                               
                                                        39,154  34,760   39,563
                                                                               
                                                       ------- -------  -------
                                                                               
TOTAL ASSETS                                           318,017 250,623  257,201
                                                                               
                                                       ------- -------  -------
                                                                               
EQUITY AND LIABILITIES                                                         
                                                                               
Equity attributable to equity holders of the parent                            
                                                                               
Equity share capital                                     8,086   8,327    8,086
                                                                               
Capital redemption reserve                                  50       -       50
                                                                               
Treasury Shares                                          (998)   (360)    (740)
                                                                               
Foreign currency reserve                                 4,317 (1,566)    1,353
                                                                               
Cash flow hedge reserve                                  1,872   2,712      902
                                                                               
Retained earnings                                       60,695  54,211   61,405
                                                                               
                                                       ------- -------  -------
                                                                               
                                                        74,022  63,324   71,056
                                                                               
Minority interest                                          443     190      312
                                                                               
                                                       ------- -------  -------
                                                                               
TOTAL EQUITY                                     12     74,465  63,514   71,368
                                                                               
                                                       ------- -------  -------
                                                                               
Non-current liabilities                                                        
                                                                               
Interest bearing loans and borrowings             9    112,026 108,929  107,032
                                                                               
Pension liability                                11      4,225       -    1,861
                                                                               
Provisions                                                 923   1,135      910
                                                                               
Deferred tax liabilities                                49,454  39,260   38,420
                                                                               
                                                       ------- -------  -------
                                                                               
                                                       166,628 149,324  148,223
                                                                               
                                                       ------- -------  -------
                                                                               
Current liabilities                                                            
                                                                               
Trade and other payables                                29,923  26,066   25,103
                                                                               
Current portion of interest bearing loans         9     45,005  10,030   10,391
and borrowings                                                                 
                                                                               
Tax payable                                              1,545   1,534    1,697
                                                                               
Provisions                                                 451     155      419
                                                                               
                                                       ------- -------  -------
                                                                               
Net current liabilities                                 76,924  37,785   37,610
                                                                               
                                                       ------- -------  -------
                                                                               
TOTAL LIABILITIES                                      243,552 187,109  185,833
                                                                               
                                                       ------- -------  -------
                                                                               
TOTAL EQUITY AND LIABILITIES                           318,017 250,623  257,201
                                                                               
                                                       ------- -------  -------



Group Cash Flow Statement
for the six months ended 30 June 2008

                                                                   30        30
                                                                 June      June
                                                    Note         2008      2007
                                                                 £000      £000
                                                                               
Operating activities                                                           
                                                                               
Cash generated from operations before exceptional              17,141    13,545
costs                                                                          
                                                                               
Discretionary pension payment                                   (950)         -
                                                                               
Exceptional costs                                               (730)     (357)
                                                                               
Tax paid                                                        (605)     (259)
                                                                               
                                                             --------  --------
                                                                               
Net cash inflow from operating activities                      14,856    12,929
                                                                               
                                                             --------  --------
                                                                               
Investing activities                                                           
                                                                               
Interest received                                                 208       517
                                                                               
Proceeds on disposal of property, plant and equipment               -        43
                                                                               
Purchase of property, plant and equipment                       (568)     (680)
                                                                               
Income from investments                                             -        30
                                                                               
Payment to acquire investments                               (44,929)     (300)
                                                                               
Income from sale of shareholding in a joint venture                 -       257
                                                                               
                                                             --------  --------
                                                                               
Net cash flows from investing activities                     (45,289)     (133)
                                                                               
                                                             --------  --------
                                                                               
Financing activities                                                           
                                                                               
Borrowing costs                                               (4,929)   (4,100)
                                                                               
Proceeds from exercise of share options                             -       107
                                                                               
Dividends paid to equity holders of the parent                (4,759)   (4,384)
                                                                               
Dividends paid to minority shareholders of                          -      (55)
subsidiaries                                                                   
                                                                               
Repayment of borrowings                                         (475)   (6,754)
                                                                               
Proceeds from borrowings                                       38,705         -
                                                                               
Acquisition of treasury shares                                  (258)         -
                                                                               
                                                             --------  --------
                                                                               
Net cash flows used in financing activities                    28,284  (15,186)
                                                                               
                                                             --------  --------
                                                                               
Net decrease in cash and cash equivalents                     (2,149)   (2,390)
                                                                               
Net foreign exchange differences                                   56         2
                                                                               
Cash and cash equivalents at 1 January                         10,237     7,897
                                                                               
                                                             --------  --------
                                                                               
Cash and cash equivalents at 30 June                  10        8,144     5,509
                                                                               
                                                             --------  --------



Notes to the accounts

1. Basis of preparation

The interim financial statements have been prepared in accordance with the
Disclosure and Transparency Rules of the Finance Services Authority and with
IAS 34, "Interim financial reporting" as adopted by the European Union.

In addition the interim financial statements have been prepared on a basis
consistent with the accounting policies adopted for the year ended 31 December
2007 and in accordance with the accounting policies that the directors
anticipate will be complied with in the annual financial statements. These
policies are set out in the Group's Annual Report and Accounts for the year
ended 31 December 2007.

The interim results are unaudited and do not constitute full accounts within
the meaning of Article 262 of the Companies (Northern Ireland) Order 1986. The
auditors have issued an unqualified report on the Company's full accounts for
the year ended 31 December 2007, which were prepared under IFRS, as endorsed by
the EC, and have been filed with the registrar of Companies.

2. Seasonality and cyclicality

There is no significant seasonality or cyclicality affecting the interim
results of the operations.

3. Segmental analysis

The following is an analysis of the revenue and results for the period,
analysed by business segment, the Group's primary basis of segmentation.

Revenue

Six months ended 30 June 2008                                                  
                                                                               
                                            Radio                   New        
                               Radio GB   Ireland   Television    Media   Total
                                   £000      £000         £000     £000    £000
                                                                               
Sales to third parties           24,949    11,395       19,883    5,792  62,019
                                                                               
Intersegmental sales                517       574          607        -   1,698
                                                                               
                                -------   -------      -------  -------  ------
                                                                               
Total segmental revenue          25,466    11,969       20,490    5,792  63,717
                                                                               
                                -------   -------      -------  -------  ------
                                                                               
Six months ended 30 June 2007                                                  
                                                                               
                                            Radio                   New        
                               Radio GB   Ireland   Television    Media   Total
                                   £000      £000         £000     £000    £000
                                                                               
Sales to third parties           23,739     7,750       20,648    5,041  57,178
                                                                               
Intersegmental sales                499       335          461       30   1,325
                                                                               
                                -------   -------      -------  ------- -------
                                                                               
Total segmental revenue          24,238     8,085       21,109    5,071  58,503
                                                                               
                                -------   -------      -------  ------- -------

Results

Six months ended 30 June 2008                                                  
                                                                               
                                            Radio                   New        
                               Radio GB   Ireland   Television    Media   Total
                                   £000      £000         £000     £000    £000
                                                                               
Operating profit for the          5,246     3,587        4,705      921  14,459
period before exceptional                                                      
costs                                                                          
                                                                               
Exceptional items allocable        (59)     (105)        (383)        -   (547)
to a business segment                                                          
                                                                               
Share of results of                 101         -            -        -     101
associates                                                                     
                                                                               
                                -------   -------      -------  -------  ------
                                                                               
Profit from continuing            5,288     3,482        4,322      921  14,013
operations before tax and                                                      
finance costs                                                                  
                                                                               
                                -------   -------      -------  -------        
                                                                               
Net finance costs                                                       (4,271)
                                                                               
Foreign exchange gain                                                        78
                                                                               
                                                                         ------
                                                                               
Profit before tax                                                         9,820
                                                                               
Taxation                                                                (2,160)
                                                                               
                                                                         ------
                                                                               
Net profit for the period                                                 7,660
                                                                               
                                                                         ------
                                                                               
Six months ended 30 June 2007                                                  
                                                                               
                                            Radio                   New        
                               Radio GB   Ireland   Television    Media   Total
                                   £000      £000         £000     £000    £000
                                                                               
Operating profit for the          4,548     2,169        5,549      608  12,874
period before exceptional                                                      
costs                                                                          
                                                                               
Exceptional items allocable           -         -        (307)        -   (307)
to a business segment                                                          
                                                                               
Share of results of                 116         -            -        -     116
associates                                                                     
                                                                               
                                -------   -------      -------  -------  ------
                                                                               
Profit from continuing            4,664     2,169        5,242      608  12,683
operations before tax and                                                      
finance costs                                                                  
                                                                               
                                -------   -------      -------  -------        
                                                                               
Net finance costs                                                       (3,731)
                                                                               
Foreign exchange gain                                                        27
                                                                               
                                                                         ------
                                                                               
Profit before tax                                                         8,979
                                                                               
Taxation                                                                  (732)
                                                                               
                                                                         ------
                                                                               
Net profit for the period                                                 8,247
                                                                               
                                                                         ------

Assets and Liabilities

Six months ended 30 June 2008

The material changes in segmental assets and liabilities from the information
disclosed in the 2007 annual report and accounts are as highlighted below:

 i. An increase of £62.0m in intangibles due to the acquisition of FM104 and
    Tibus (detailed further in note 8)
   
ii. An increase of £2.4m in the pension deficit (detailed further in note 11)
   
iii. An increase of £34.6m in the current portion of interest bearing loans and
    borrowings due to the new facility entered into during the period (detailed
    further in note 9)
   
4. Exceptional items

                                                                   30        30
                                                                 June      June
                                                                 2008      2007
                                                                 £000      £000
                                                                               
Restructuring costs                                             (547)         -
                                                                               
Costs associated with aborted transactions                          -     (307)
                                                                               
Tax credit associated with exceptional costs                      153        92
                                                                               
Gain on net deferred tax liability due to future UK corporation     -     1,388
tax being 28% which was incorporated in the 2007 Finance Act                   
                                                                               
                                                              -------   -------
                                                                               
                                                                (394)     1,173
                                                                               
                                                              -------   -------

5. Dividends

                                                                   30       30
                                                                 June     June
                                                                 2008     2007
                                                                 £000     £000
                                                                              
Equity dividends on ordinary shares                                           
                                                                              
Declared and paid during the period                                           
                                                                              
Final for 2007: 8.30p (2006: 8.00p)                             4,759    4,384
                                                                              
                                                              -------  -------
                                                                              
Proposed but not recognised as a liability at 30 June                         
                                                                              
Interim for 2008: 3.30p                                         3,165         
                                                                              
                                                              -------         

6. Earnings per share

Basic earnings per share is calculated based on the profit for the period after
exceptional items 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 period before exceptional items and on the weighted average number of
shares in issue during the period.

Diluted earnings per share is calculated based on the profit for the period and
on the weighted average number of shares adjusted to reflect the dilutive
potential of the Share Option Schemes. The impact of these are summarised
below.

Net profit

                                                                  30         30
                                                                June       June
                                                                2008       2007
                                                                £000       £000
                                                                               
Net profit attributable to equity holders                      7,529      8,217
                                                                               
                                                             -------    -------
                                                                               
                                                                  30         30
                                                                June       June
                                                                2008       2007
                                                                £000       £000
                                                                               
Net profit attributable to equity holders                      7,529      8,217
                                                                               
Exceptional costs                                                547        307
                                                                               
Taxation relating to exceptional items                         (153)       (92)
                                                                               
Restatement of deferred tax to 28%                                 -    (1,388)
                                                                               
                                                             -------    -------
                                                                               
Net profit attributable to ordinary shareholders for           7,923      7,044
adjusted earnings per share                                                    
                                                                               
                                                             -------    -------
                                                                               
Weighted average number of shares                                              
                                                                               
                                                                  30         30
                                                                June       June
                                                                2008       2007
                                                           Thousands  Thousands
                                                                               
Weighted average number of shares for basic earnings per      57,542     54,777
share                                                                          
                                                                               
Effect of dilution of share options                               90        407
                                                                               
                                                             -------    -------
                                                                               
Adjusted weighted average number of ordinary shares for       57,632     55,184
diluted earnings per share                                                     
                                                                               
                                                             -------    -------

7. Property, plant and equipment

During the period, the Group spent £568,000 on capital additions.

8. Business combinations

(a) Tibus

On 12 February 2008 the Group acquired the entire issued share capital of The
Internet Business Limited (trading as `Tibus'). The acquisition was effected
through Holbeck Enterprises Limited, a dormant holding company which owns 100%
of the issued share capital of Tibus. The total consideration for the
acquisition is up to £5m financed from existing facilities.

The investment in Tibus has been included in the Company's balance sheet at its
provisional fair value at the date of acquisition.

(b) FM104

On 10 April 2008 the Group acquired the entire issued share capital of Capital
Radio Productions plc and Babstova plc (trading as FM104) for a consideration
of £43,563,000 in cash (including costs).

The investment in Capital Radio Productions plc and Babstova plc has been
included in the Company's balance sheet at its provisional fair value at the
date of acquisition.

Analysis of the acquisition of FM104

                                                             Book    Fair value
                                                           values      to Group
                                                             £000          £000
                                                                               
Investments                                                    25            25
                                                                               
Property, plant and equipment                                 126           126
                                                                               
Intangible assets                                               -        53,308
                                                                               
Debtors                                                     1,818         1,818
                                                                               
Bank                                                          140           140
                                                                               
Creditors                                                 (1,192)       (1,192)
                                                                               
Deferred taxation liability                                     -      (10,662)
                                                                               
                                                         --------      --------
                                                                               
Net assets                                                    917        43,563
                                                                               
                                                         --------      --------
                                                                               
Discharged by:                                                                 
                                                                               
Cash                                                                     43,563
                                                                               
                                                                         ------

From the date of acquisition to 30 June 2008, FM104 has contributed £569,000 to
the profit before tax of the Group. If the combination had taken place at the
beginning of the year, FM104 would have contributed profit before tax in the
period of £1,417,000 to the Group and revenue of £3,806,000.

9. Financial liabilities

                                                          30        30        31
                                                        June      June  December
                                                        2008      2007      2007
                                                        £000      £000      £000
                                                                                
Current                                                                         
                                                                                
Current instalments due on bank loans                 45,005    10,030    10,391
                                                                                
Non-current                                                                     
                                                                                
Non-current instalments due on bank loans            112,026   108,929   107,032
                                                                                
                                                    --------  --------  --------
                                                                                
Total                                                157,031   118,959   117,423
                                                                                
                                                    --------  --------  --------

The bank loans at 30 June 2008 are stated net of deferred financing costs
amounting to £1,163,000 (30 June 2007: £959,000, 31 December 2007: £777,000).

On the 13 March 2008 UTV Radio (ROI) Limited entered into a bi-lateral facility
for the purposes of financing in part the FM104 acquisition. This facility is a
€47.6m term loan with a bullet repayment at maturity on 30 June 2009, or
earlier if refinancing of the facilities takes place before this date.

10. Net debt

                                                          30        30        31
                                                        June      June  December
                                                        2008      2007      2007
                                                        £000      £000      £000
                                                                                
Bank loans                                         (158,194) (119,918) (118,200)
                                                                                
Cash and short term deposits                           8,144     5,509    10,237
                                                                                
                                                    --------  --------  --------
                                                                                
Net debt                                           (150,050) (114,409) (107,963)
                                                                                
                                                    --------  --------  --------

11. Pension schemes

The IAS 19 deficit at 30 June 2008 is £4,225,000 compared with a deficit of £
1,861,000 at 31 December 2007.  The increase in the deficit reflects
considerable falls in equity values of the schemes by around 10% but
cushioned on the liability side by the increase in the discount rate from 5.8%
to 6.5%, although inflationary expectations have increased from 3.4% at 31
December 2007 to 3.75% at 30 June 2008.  These movements were partially offset
by a discretionary payment of £950,000 over and above normal funding during the
period.

12. Reconciliation of movements in equity

                 Equity    Capital           Foreign Cash flow             Share
                  share redemption Treasury currency     hedge  Retained  holder
                capital    reserve   shares  reserve   reserve  earnings  equity
                   £000       £000     £000     £000      £000      £000    £000
                                                                                
Balance at 1      8,220          -    (360)  (1,595)     1,579    46,479  54,323
January 2007                                                                    
                                                                                
Exercise of         107          -        -        -         -         -     107
share options                                                                   
                                                                                
Total                 -          -        -       29     1,133    12,022  13,184
recognised                                                                      
income and                                                                      
expense in                                                                      
year                                                                            
                                                                                
Share based           -          -        -        -         -        94      94
payment                                                                         
                                                                                
Dividends             -          -        -        -         -   (4,384) (4,384)
                                                                                
                 ------     ------   ------   ------    ------    ------   -----
                                                                                
Balance at 30     8,327          -    (360)  (1,566)     2,712    54,211  63,324
June 2007                                                                       
                                                                                
Exercise of           -          -        -        -         -         -       -
share options                                                                   
                                                                                
Acquisition           -          -    (380)        -         -         -   (380)
of treasury                                                                     
shares                                                                          
                                                                                
Capital         183,478          -        -        -         - (183,478)       -
restructure                                                                     
                                                                                
Reduction in  (189,065)         50        -        -         -   189,015       -
capital                                                                         
                                                                                
Share placing     5,346          -        -        -         -         -   5,346
                                                                                
Total                 -          -        -    2,919   (1,810)     4,166   5,275
recognised                                                                      
income and                                                                      
expense in                                                                      
the year                                                                        
                                                                                
Share based           -          -        -        -         -       323     323
payment                                                                         
                                                                                
Dividends             -          -        -        -         -   (2,832) (2,832)
paid to                                                                         
equity                                                                          
shareholders                                                                    
                                                                                
                 ------     ------   ------   ------    ------    ------   -----
                                                                                
Balance at 31     8,086         50    (740)    1,353       902    61,405  71,056
December 2007                                                                   
                                                                                
Acquisition           -          -    (258)        -         -         -   (258)
of treasury                                                                     
shares                                                                          
                                                                                
Total                 -          -        -    2,964       970     4,466   8,400
recognised                                                                      
income and                                                                      
expense in                                                                      
the year                                                                        
                                                                                
Share based                                                        (417)   (417)
payment                                                                         
                                                                                
Dividends             -          -        -        -         -   (4,759) (4,759)
paid to                                                                         
equity                                                                          
shareholders                                                                    
                                                                                
                 ------     ------   ------   ------    ------    ------   -----
                                                                                
Balance at 30     8,086         50    (998)    4,317     1,872    60,695  74,022
June 2008                                                                       
                                                                                
                 ------     ------   ------   ------    ------    ------   -----

                                                 Shareholder  Minority         
                                                      equity  interest    Total
                                                        £000      £000     £000
                                                                               
Balance at 1 January 2007                             54,323       215   54,538
                                                                               
Exercise of share options                                107         -      107
                                                                               
Total recognised income and expense in the year       13,184        30   13,214
                                                                               
Share based payment                                       94         -       94
                                                                               
Dividends                                            (4,384)      (55)  (4,439)
                                                                               
                                                     -------    ------   ------
                                                                               
Balance at 30 June 2007                               63,324       190   63,514
                                                                               
Exercise of share options                                  -         -        -
                                                                               
Acquisition of treasury shares                         (380)         -    (380)
                                                                               
Share placing                                          5,346       122    5,468
                                                                               
Total recognised income and expense in the year        5,275         -    5,275
                                                                               
Share based payment                                      323         -      323
                                                                               
Dividends paid to minority interests                       -         -        -
                                                                               
Dividends paid to equity shareholders                (2,832)         -  (2,832)
                                                                               
                                                     -------    ------   ------
                                                                               
Balance at 31 December 2007                           71,056       312   71,368
                                                                               
Acquisition of treasury shares                         (258)         -    (258)
                                                                               
Total recognised income and expense in the year        8,400       131    8,531
                                                                               
Share based payments                                   (417)         -    (417)
                                                                               
Dividends paid to minority interests                       -         -        -
                                                                               
Dividends paid to equity shareholders                (4,759)         -  (4,759)
                                                                               
                                                     -------    ------   ------
                                                                               
Balance at 30 June 2008                               74,022       443   74,465
                                                                               
                                                     -------    ------   ------

13. Related party transactions

The nature of related parties disclosed in the consolidated financial
statements for the Group as at and for the year ended 31 December 2007 has not
changed. There have been no significant related party transactions in the six
month period ended 30 June 2008.

14. Post balance sheet events

RIGHTS ISSUE

On 15 July 2008 the company issued 38,361,011 shares by way of a Rights Issue
raising approximately £49.9 million. The Rights Issue was undertaken on the
basis of 2 Rights Issue Shares for every 3 Existing Ordinary Shares held on 17
June 2008 at the Rights Issue Price of 130 pence per Rights Issue Share.

The net proceeds of the Rights Issue received by the Company has been used to
reduce the Group's debt and consequently improve its overall gearing.

REFINANCING

In conjunction with the Rights Issue, on the 25 July 2008 the Group has put in
place a revised banking facility by way of a new facility agreement which
comprises a five year, £95 million and €50 million debt facility with the Bank
of Ireland. This revised facility has been syndicated to a group of three banks
comprising Barclays Bank, Allied Irish Bank and Ulster Bank.

Statement of directors' responsibilities

The interim management report is the responsibility of, and has been approved
by, the directors of UTV Media plc. Accordingly, the directors confirm that to
the best of their knowledge:

  * the condensed set of financial statements has been prepared in accordance
    with IAS 34 `Interim Financial Reporting' as adopted by the European Union;
   
  * the interim management report includes a fair review of the information
    required by the Disclosure and Transparency Rules:
   
- DTR 4.2R, being an indication of important events that have occurred during
the first six months of the financial year and their impact on the condensed
set of financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the year; and

- DTR 4.2R, being related party transactions that have taken place in the first
six months of the current financial year and that have materially affected the
financial position or performance of the entity during that period, and any
changes in the related party transactions described in the last annual report
that could do so.

By order of the Board:

John McCann
Group Chief Executive
26 August 2008

Independent Review Report to UTV Media plc

Introduction

We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the 6 months ended 30 June
2008 which comprises the Group Income Statement, Group Balance Sheet, Group
Cash Flow Statement, Group Statement of Recognised Income & Expense and the
related notes 1 to 14. We have read the other information contained in the half
yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.

This report is made solely to the company in accordance with guidance contained
in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our work, for this
report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and Transparency
Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.

Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 6 months ended 30 June 2008 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.

Ernst & Young LLP
Belfast
26 August 2008