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UTV Media PLC (UTV)

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Tuesday 23 March, 2010

UTV Media PLC

Preliminary Results


UTV Media plc

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

Preliminary Results
for the year ended 31 December 2009

Financial highlights on continuing operations

  * Group revenue down by 6% to £112.1m (2008: £119.7m)
   
  * Group operating profit is £23.7m (2008: £28.3m)
   
  * Pre-tax profits before exceptional items of £18.1m (2008: £20.7m)
   
  * 18% reduction in net debt from £107.6m to £88.5m
   
  * Annualised cost savings of £6.0m achieved in 2009
   
  * Net finance costs down 29% to £5.8m (2008: £8.1m)
   
  * Exceptional costs before tax of £0.6m (2008: £4.5m)
   
  * Proposed final dividend of 2.00p (2008: 2.00p) resulting in a full year
    dividend of 2.00p (2008: 5.30p)
   
Operational highlights and prospects

  * Continuing strong audience delivery across both Radio and Television
   
  * GB Radio and Television revenue have turned positive in the first four
    months of 2010, whilst the rate of decline in Irish Radio has slowed
   
  * GB Radio expanded by the acquisition of Sport magazine which complements
    the strong sports-led offering to advertisers
   
  * Valley Radio and Central Radio, which accounted for £0.6m of loss from
    discontinued operations, were disposed of during the year
   
  * Subsequent to the year end, greater operational flexibility has been
    facilitated by the renegotiation of key banking covenants at favourable
    market rates
   
John McCann, Group Chief Executive, UTV Media plc, said:

"The current, prolonged downturn is unprecedented. Despite that, I believe
today's results demonstrate the robustness of UTV Media. They are also
testament to the hard work in very difficult conditions of everyone in the
company.

"I am particularly pleased that throughout the difficulties we have been able
to significantly improve our capital position. The reduction in net debt by 18%
and cost savings ahead of target, mean that the company is in a strong position
to tackle the new financial year. I am acutely aware that any recovery is very
fragile, but I am pleased that we have seen some improvements in the
advertising market so far this year."

Key Dates

  * 18 May 2009 - date of Annual General Meeting
   
  * 28 May 2010 - record date for payment of dividends
   
  * 15 July 2010 - payment of dividends
   

For further information contact:

Maitland                                                  +44 (0) 20 7379 5151
Anthony Silverman

UTV Media plc
John McCann Group Chief Executive                         +44 (0) 28 9026 2202
Norman McKeown Group Finance Director                     +44 (0) 28 9026 2098
Orla McKibbin Head of Communications                      +44 (0) 28 9026 2188


Chairman's Statement

Introduction

The strong underlying performance of your company in the severest recession in
a generation is evident in this report. Your company responded to the
unprecedented downturn in advertising revenue across the media sector by
disposing of loss making activities, restructuring various parts of the
business, imposing a general pay freeze and further tightening cost control.
This delivered group operating profit of £23.7m (2008 : £28.3m). Strong
cashflow and strict working capital management also proved very effective, with
net debt being substantially reduced by £19.1m to £88.5m (2008 : £107.6m).
Overall, and in the context of the most challenging market conditions we have
experienced, your company emerged from 2009 with pre-tax profits before
exceptional items from continuing operations of £18.1m (2008 : £20.7m).

Results from continuing operations

Group revenue, from continuing operations, was £112.1m (2008: £119.7m). Within
this, the effect of acquisitions boosted turnover by £3.9m, while foreign
exchange movements added £2.2m.

Continuing group operating profit, including associates, before exceptional
items, was £24.0m (2008 : £28.6m), with radio operating profit of £16.7m (2008:
£18.9m) accounting for 70% of the total. Television operating profit declined
to £5.3m (2008 : £7.7m) and new media operating profit was maintained at £2.0m.

Net interest and finance charges were significantly lower at £5.8m (2008 : £
8.1m), and we incurred a small loss on foreign exchange of £0.1m (2008 : Gain £
0.3m). Pre-tax exceptional costs on continuing operations of £0.6m (2008 : £
4.5m) comprised restructuring costs in GB radio and television and our share of
business closure costs in radio Ireland.

Dividend

Your Board has reviewed dividend policy in light of changed credit conditions
and the economic downturn. A key priority is to realign the group financial
structure with new market norms and, consequently, to further reduce net debt.
We recommend, therefore, a dividend of 2.0p (2008: 5.30p) for the year, which
would allow most of the cash flow generated from operations to be utilised in
paying down borrowings. The dividend will be paid on 15 July 2010 to all
shareholders on the Register at the close of business on 28 May 2010.

Radio

Revenue from continuing radio operations was £68.0m (2008 : £70.2 m),
representing more than 60% of group turnover. Of that amount, £43.2m (2008 : £
45.3m) was generated in our GB Radio division and £24.8m (2008 : £24.9m) was
derived from our Irish radio operations.

With the continued deterioration of the advertising markets, we implemented a
further cost reduction plan which resulted in some redundancies and a
reappraisal of all expenditure. We also adopted a robust approach to radio
stations which could not be brought to profitability within a reasonable
timeframe and as a result we disposed of Valleys Radio and Central Radio in our
GB Radio division. By contrast, we saw an opportunity to generate profits
within such a timeframe and to complement our already strong sports-led
offering to advertisers by acquiring the loss-making Sport magazine for a
nominal sum. This publication was quickly integrated into our existing sales
operation, its cost base was significantly reduced and revenue of £1.8m was
generated during the period. As we forecast in our business plan for the
magazine, it made a small loss in the period of £0.3m. Overall, our GB Radio
division delivered operating profit of £9.4m (2008 : £10.6m). On a like for
like basis, advertising revenue from our GB radio division was down by 8%.

Market conditions were also difficult in the Irish radio market. Revenue of £
24.8m was maintained with the favourable impact of foreign exchange movements
accounting for £2.2m and the full year effect of the acquisition of FM104 in
April 2008, accounting for an additional £1.9m of revenue. Excluding these
elements, Irish radio advertising revenue was down by 16% on a like for like
basis. Cost reduction was also a key feature of our radio business in Ireland,
mitigating the revenue downturn and contributing to an operating profit of £
7.0m (2008 : £8.0m).

Television

Conditions in the television market were difficult with turnover for this
division down by £5.5m to £32.5m (2008 : £38.0m). The Dublin market place was
particularly challenging with our television advertising revenue from there
falling 33%. Again, a focus on cost control mitigated much of this downturn,
but television operating profit still dropped by £2.4m to £5.3m (2008 : £7.7m).

New Media

Our new media division was not immune to the effects of the recession but
delivered a very satisfactory outcome. The higher margin business of web
development helped to offset some of the competitive pricing issues in
broadband and telephony. Both turnover and operating profit were maintained at
£11.5m and £2.0m respectively.

Cost reduction programme

I referred in last year's Report to the cost-cutting plan which we were
implementing to counter the impact of the recession. This was executed across
the group in 2009 and in total we achieved cost savings of over £6.0m in the
year under review.

Financing

Despite reduced profits, we achieved debt reduction of £19.1m (18%) during the
year. We also confidently managed tightening debt covenants, although
operational flexibility was sometimes constrained by this. Our budgets indicate
further debt reduction in 2010 and continuing compliance with tighter
covenants. However, to ensure optimal operational flexibility we have agreed
terms with our banks for the continuation of covenants at current levels for
2010 and thereafter on the original reducing basis, deferred by one year. This
is in return for a modest increase in interest margin up to a maximum of 2.85%,
ratcheting downwards, which your Board believes is an attractive rate in the
current market.

Prospects

The macroeconomic environment continues to be of concern and recovery may be
fragile. Uncertainty in the economy impacts negatively on advertisers'
expenditure commitments and hence, the advertising market remains very short
term.

However, trading in the first few weeks of 2010 has been more encouraging with
the UK television market, in particular, showing some signs of improvement. We
have shared in this improvement, but continuing weakness in the Irish market
has affected the overall performance of our television advertising revenue
which, nevertheless, is expected to be up by 2% in the first four months.
Softer comparatives in the second and third quarter, combined with the positive
impact of the World Cup should provide some momentum in the next six months,
though visibility on this is limited.

Greater confidence can be attached to revenue forecasts for talkSPORT in a
World Cup year. Already, talkSPORT appears to be gaining some advertising and
sponsorship traction and in the first four months of 2010 is expected to
achieve revenue growth of 16%. talkSPORT was also successful recently in
winning two exclusive Premier League broadcast rights packages and these,
coupled with the World Cup and record audience figures, should ensure a
stronger revenue performance in the year ahead.

The revenue decline in our local radio stations in Great Britain slowed
considerably in the first few weeks of 2010, and the first four months is
expected to be down by 3%. Again, softer comparatives and any improvement in
the wider economy should prove to be positive for our stations during the rest
of the year.

Revenue from Sport magazine is expected to have doubled in the first four
months and the publication is now achieving profit targets. Overall, revenue in
our GB radio division is forecast to be up by 6% on a like for like basis in
the first few months of 2010.

Our Irish radio division experienced a slower rate of decline in turnover in
the early weeks of 2010 and is expected to record a revenue reduction of 6% in
the first four months.

Revenue in our new media division has held up reasonably well in the first four
months and is trading broadly in line with the previous year.

People

The severity of the recession has put enormous pressures on management and
staff across the group. Redundancies, pay freezes and general cost cutting have
been painful and it is to the credit of all concerned that the group has
weathered the economic storm so well. I wish to thank Board, management and
staff for their continuing efforts to maintain the success of the company.

John B McGuckian
Chairman
23 March 2010


Group Income Statement
For the year ended 31 December 2009

                                Results                          Results                     
                                 before                           before                     
                            Exceptional Exceptional          Exceptional Exceptional         
                                  Items       Items    Total       Items       Items    Total
                                   2009        2009     2009        2008        2008     2008
                      Notes        £000        £000     £000        £000        £000     £000
                                                                                             
Continuing operations                                                                        
                                                                                             
Revenue                   2     112,079           -  112,079     119,670           -  119,670
                                                                                             
Operating costs           2    (88,396)           - (88,396)    (91,374)           - (91,374)
                                                                                             
                                  -----       -----    -----       -----       -----    -----
                                                                                             
Operating profit from            23,683           -   23,683      28,296           -   28,296
continuing operations                                                                        
before tax and finance                                                                       
costs                                                                                        
                                                                                             
Non-operational exceptional           -       (564)    (564)           -     (3,159)  (3,159)
costs                                                                                        
                                                                                             
Share of results of                 291           -      291         260           -      260
associates accounted for                                                                     
using the equity method                                                                      
                                                                                             
                                  -----       -----    -----       -----       -----    -----
                                                                                             
Profit from               2      23,974       (564)   23,410      28,556     (3,159)   25,397
continuing operations                                                                        
before tax and                                                                               
finance costs                                                                                
                                                                                             
Finance revenue                      89           -       89         382           -      382
                                                                                             
Finance costs                   (5,848)           -  (5,848)     (8,526)     (1,367)  (9,893)
                                                                                             
Foreign exchange (loss)/          (129)           -    (129)         316           -      316
gain                                                                                         
                                                                                             
                                  -----       -----    -----       -----       -----    -----
                                                                                             
Profit from continuing           18,086       (564)   17,522      20,728     (4,526)   16,202
operations before tax                                                                        
                                                                                             
Taxation                  4     (3,663)     (1,492)  (5,155)     (4,523)       (378)  (4,901)
                                                                                             
                                  -----       -----    -----       -----       -----    -----
                                                                                             
Profit from continuing           14,423     (2,056)   12,367      16,205     (4,904)   11,301
operations after tax                                                                         
                                                                                             
Discontinued operations                                                                      
                                                                                             
Loss from discontinued            (321)       (299)    (620)     (1,371)       (669)  (2,040)
operations                                                                                   
                                                                                             
                                  -----       -----    -----       -----       -----    -----
                                                                                             
Profit for the year              14,102     (2,355)   11,747      14,834     (5,573)    9,261
                                                                                             
                                 ------      ------   ------      ------      ------   ------
                                                                                             
Attributable to:                                                                             
                                                                                             
Equity holders of the            13,491     (2,355)   11,136      14,553     (5,573)    8,980
parent                                                                                       
                                                                                             
Minority interests                  611           -      611         281           -      281
                                                                                             
                                  -----       -----    -----       -----       -----    -----
                                                                                             
                                 14,102     (2,355)   11,747      14,834     (5,573)    9,261
                                                                                             
                                 ------      ------   ------      ------      ------   ------

Earnings per share                                               2009      2008
                                                                               
Continuing operations                                                          
                                                                               
Basic and diluted                                          5   12.32p    14.26p
                                                                               
Adjusted and diluted adjusted                              5   14.49p    20.61p
                                                                               
From continuing and discontinued operations                                    
                                                                               
Basic and diluted                                          5   11.67p    11.62p
                                                                               
Adjusted and diluted adjusted                              5   14.15p    18.84p


Group Statement of Comprehensive Income
For the year ended 31 December 2009

                                                                 2009      2008
                                                                 £000      £000
                                                                               
Profit for the year                                            11,747     9,261
                                                                               
                                                               ------    ------
                                                                               
Other comprehensive income                                                     
                                                                               
Exchange difference on translation of foreign operations      (6,214)    17,293
                                                                               
Actuarial loss on defined benefit pension schemes             (3,274)   (7,813)
                                                                               
Cash flow hedges:                                                              
                                                                               
Loss arising during the year                                  (1,019)   (1,855)
                                                                               
Less transfers to the income statement                          1,857   (1,005)
                                                                               
Tax relating to other comprehensive income                        694     2,535
                                                                               
                                                               ------    ------
                                                                               
Other comprehensive (loss)/income for the year, net of tax    (7,956)     9,155
                                                                               
                                                               ------    ------
                                                                               
Total comprehensive income for the year, net of tax             3,791    18,416
                                                                               
                                                               ------    ------
                                                                               
Attributable to:                                                               
                                                                               
Equity holders of the parent                                    3,180    18,135
                                                                               
Minority interests                                                611       281
                                                                               
                                                               ------    ------
                                                                               
                                                                3,791    18,416
                                                                               
                                                               ------    ------


Group Balance Sheet
At 31 December 2009

                                                                 2009      2008
                                                       Notes     £000      £000
                                                                               
ASSETS                                                                         
                                                                               
Non-current assets                                                             
                                                                               
Property, plant and equipment                                  11,440    11,581
                                                                               
Intangible assets                                             261,030   270,542
                                                                               
Investments accounted for using the equity method                 137       151
                                                                               
Deferred tax asset                                             14,255    16,783
                                                                               
                                                               ------    ------
                                                                               
                                                              286,862   299,057
                                                                               
                                                               ------    ------
                                                                               
Current assets                                                                 
                                                                               
Inventories                                                       332       491
                                                                               
Trade and other receivables                                    32,915    30,895
                                                                               
Cash and short term deposits                                    8,434     9,280
                                                                               
                                                               ------    ------
                                                                               
                                                               41,681    40,666
                                                                               
                                                               ------    ------
                                                                               
TOTAL ASSETS                                                  328,543   339,723
                                                                               
                                                               ------    ------
                                                                               
EQUITY AND LIABILITIES                                                         
                                                                               
Equity attributable to equity holders of the parent                            
                                                                               
Equity share capital                                           55,557    55,557
                                                                               
Capital redemption reserve                                         50        50
                                                                               
Treasury shares                                               (1,258)   (1,258)
                                                                               
Foreign currency reserve                                       12,432    18,646
                                                                               
Cash flow hedge reserve                                         (821)   (1,455)
                                                                               
Retained earnings                                              63,409    56,475
                                                                               
                                                               ------    ------
                                                                               
                                                              129,369   128,015
                                                                               
Minority interest                                                 747       593
                                                                               
                                                               ------    ------
                                                                               
TOTAL EQUITY                                                  130,116   128,608
                                                                               
                                                               ------    ------
                                                                               
Non-current liabilities                                                        
                                                                               
Financial liabilities                                      7   88,532   108,267
                                                                               
Pension liability                                              10,999     8,593
                                                                               
Provisions                                                      1,060     1,100
                                                                               
Deferred tax liabilities                                       49,580    49,037
                                                                               
                                                               ------    ------
                                                                               
                                                              150,171   166,997
                                                                               
                                                               ------    ------
                                                                               
Current liabilities                                                            
                                                                               
Trade and other payables                                       36,793    31,612
                                                                               
Financial liabilities                                      7    8,374     8,650
                                                                               
Derivative financial liabilities                                1,100     1,958
                                                                               
Tax payable                                                     1,540     1,556
                                                                               
Provisions                                                        449       342
                                                                               
                                                               ------    ------
                                                                               
Net current liabilities                                        48,256    44,118
                                                                               
                                                               ------    ------
                                                                               
TOTAL LIABILITIES                                             198,427   211,115
                                                                               
                                                               ------    ------
                                                                               
TOTAL EQUITY AND LIABILITIES                                  328,543   339,723
                                                                               
                                                               ------    ------


Group Cash Flow Statement
For the year ended 31 December 2009

                                                                 2009      2008
                                                                 £000      £000
                                                                               
Operating activities                                                           
                                                                               
Profit before tax                                              16,767    13,575
                                                                               
Adjustments to reconcile profit before tax to net cash flows                   
from operating activities                                                      
                                                                               
Foreign exchange loss/(gain)                                      129     (316)
                                                                               
Net finance costs before exceptional costs                      5,759     8,144
                                                                               
Share of results of associates                                  (291)     (260)
                                                                               
Non-operational exceptional costs                                 873     5,245
                                                                               
Depreciation of property, plant and equipment                   1,816     1,879
                                                                               
Difference between pension contributions paid and amounts       (867)   (1,435)
recognised in the income statement                                             
                                                                               
Decrease in inventories                                           159         6
                                                                               
(Increase)/Decrease in trade and other receivables            (2,772)       417
                                                                               
Increase in trade and other payables                            6,952     2,095
                                                                               
Increase in provisions                                            328       113
                                                                               
Profit from sale of property, plant and equipment                (29)       (5)
                                                                               
Share based payments                                               82     (417)
                                                                               
                                                               ------    ------
                                                                               
Cash generated from operations before exceptional              28,906    29,041
costs                                                                          
                                                                               
Exceptional costs                                             (1,781)   (1,492)
                                                                               
Tax paid                                                        (279)     (443)
                                                                               
                                                               ------    ------
                                                                               
Net cash inflow from operating activities                      26,846    27,106
                                                                               
                                                               ------    ------
                                                                               
Investing activities                                                           
                                                                               
Interest received                                                  96       409
                                                                               
Proceeds on disposal of property, plant and equipment             111        16
                                                                               
Purchase of property, plant and equipment                     (2,697)   (1,963)
                                                                               
Dividends received from associates                                227       154
                                                                               
Proceeds from disposal of subsidiary undertaking and                -       140
business units                                                                 
                                                                               
Outflow on acquisition of subsidiary undertaking                (154)  (46,108)
                                                                               
Acquisition of trade and net assets                             (217)     (100)
                                                                               
                                                               ------    ------
                                                                               
Net cash flows from investing activities                      (2,634)  (47,452)
                                                                               
                                                               ------    ------
                                                                               
Financing activities                                                           
                                                                               
Borrowing costs                                               (3,822)  (10,875)
                                                                               
Swap (cost)/income                                            (1,857)     1,005
                                                                               
Acquisition of treasury shares                                      -     (518)
                                                                               
Dividends paid to equity shareholders                         (1,911)   (7,877)
                                                                               
Dividends paid to minority interests                            (457)         -
                                                                               
Repayment of borrowings                                      (16,765)  (51,806)
                                                                               
Proceeds from borrowings                                            -    41,705
                                                                               
Rights issue                                                     (50)    47,529
                                                                               
                                                               ------    ------
                                                                               
Net cash flows used in financing activities                  (24,862)    19,163
                                                                               
                                                               ------    ------
                                                                               
Net decrease in cash and cash equivalents                       (650)   (1,183)
                                                                               
Net foreign exchange differences                                (196)       226
                                                                               
Cash and cash equivalents at 1 January                          9,280    10,237
                                                                               
                                                               ------    ------
                                                                               
Cash and cash equivalents at 31 December                        8,434     9,280
                                                                               
                                                               ------    ------


Group Statement of Changes in Equity
For the year ended 31 December 2009

Year ended 31 December 2009

               Equity    Capital           Foreign Cashflow            Share                 
                share redemption Treasury currency    hedge Retained  holder Minority        
              capital    reserve   shares  reserve  reserve earnings  equity interest   Total
                 £000       £000     £000     £000     £000     £000    £000     £000    £000
                                                                                             
At 1 January   55,557         50  (1,258)   18,646  (1,455)   56,475 128,015      593 128,608
2009                                                                                         
                                                                                             
Total net           -          -        -  (6,214)      634    8,760   3,180      611   3,791
comprehensive                                                                                
income/(loss)                                                                                
in the year                                                                                  
                                                                                             
Dividends           -          -        -        -        -        -       -    (457)   (457)
paid to                                                                                      
minority                                                                                     
shareholders                                                                                 
                                                                                             
Share based         -          -        -        -        -       82      82        -      82
payment                                                                                      
                                                                                             
Dividends           -          -        -        -        -  (1,908) (1,908)        - (1,908)
paid to                                                                                      
equity                                                                                       
shareholders                                                                                 
                                                                                             
                -----      -----    -----    -----    -----    -----   -----    -----   -----
                                                                                             
At 31          55,557         50  (1,258)   12,432    (821)   63,409 129,369      747 130,116
December 2009                                                                                
                                                                                             
                -----      -----    -----    -----    -----    -----   -----    -----   -----

Year ended 31 December 2008

               Equity    Capital           Foreign Cashflow            Share                 
                share redemption Treasury currency    hedge Retained  holder Minority        
              capital    reserve   shares  reserve  reserve earnings  equity interest   Total
                 £000       £000     £000     £000     £000     £000    £000     £000    £000
                                                                                             
At 1 January    8,086         50    (740)    1,353      902   61,405  71,056      312  71,368
2008                                                                                         
                                                                                             
Total net           -          -        -   17,293  (2,357)    3,199  18,135      281  18,416
comprehensive                                                                                
income/(loss)                                                                                
in the year                                                                                  
                                                                                             
Acquisition         -          -    (518)        -        -        -   (518)        -   (518)
of treasury                                                                                  
shares                                                                                       
                                                                                             
Rights issue   49,869          -        -        -        -        -  49,869        -  49,869
proceeds                                                                                     
                                                                                             
Rights issue  (2,398)          -        -        -        -        - (2,398)        - (2,398)
costs                                                                                        
                                                                                             
Share based         -          -        -        -        -    (222)   (222)        -   (222)
payment                                                                                      
                                                                                             
Dividends           -          -        -        -        -  (7,907) (7,907)        - (7,907)
paid to                                                                                      
equity                                                                                       
shareholders                                                                                 
                                                                                             
                -----      -----    -----    -----    -----    -----   -----    -----   -----
                                                                                             
At 31          55,557         50  (1,258)   18,646  (1,455)   56,475 128,015      593 128,608
December 2008                                                                                
                                                                                             
                -----      -----    -----    -----    -----    -----   -----    -----   -----


Notes to the Group Financial Statements

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

The Group financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by the European
Union as they apply to the financial statements of the Group for the year ended
31 December 2009 and applied in accordance with the Companies Act 2006. 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 in the preliminary announcement does not
constitute statutory accounts within the meaning of Section 435 of the
Companies Act 2006 in respect of the accounts for the year ended 31 December
2009 or Section 240 of the Companies Act 1985 in respect of the accounts for
the year ended 31 December 2008. The statutory accounts for the year ended 31
December 2008, upon which the Company's auditors have given a report which was
unqualified and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985, have been delivered to the Registrar of Companies. The
statutory accounts for the year ended 31 December 2009 have yet to be signed.
They will be finalised on the basis of the financial information presented by
the directors in this preliminary announcement and will be delivered to the
Registrar of Companies in due course.

 2. Revenue and segmental analysis
   
The Group operates in four principal areas of activity - radio in GB, radio in
Ireland, commercial television and new media. These four principal areas of
activity also form the basis on which the Group is managed and reports are
provided to the Chief Executive and the Board. Discontinued operations relate
to a number of loss making radio stations in GB which were identified for sale
or closure.

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 with third parties.

The following tables present revenue and segment result information regarding
the Group's business segments for the years ended 31 December 2009 and 2008.

Revenue

Year ended 31 December 2009

                                         Radio   Radio               New        
                                            GB Ireland Television  Media   Total
                                          £000    £000       £000   £000    £000
                                                                                
Sales to third parties                  43,173  24,823     32,544 11,539 112,079
                                                                                
Intersegmental sales                       846   1,544      1,838      -   4,228
                                                                                
                                        ------  ------     ------ ------  ------
                                                                                
                                        44,019  26,367     34,382 11,539 116,307
                                                                                
                                        ------  ------     ------ ------  ------

Year ended 31 December 2008

                                         Radio   Radio               New        
                                            GB Ireland Television  Media   Total
                                          £000    £000       £000   £000    £000
                                                                                
Sales to third parties                  45,287  24,870     38,001 11,512 119,670
                                                                                
Intersegmental sales                     1,005   1,173      1,317      -   3,495
                                                                                
                                        ------  ------     ------ ------  ------
                                                                                
                                        46,292  26,043     39,318 11,512 123,165
                                                                                
                                        ------  ------     ------ ------  ------

Results

Year ended 31 December 2009

                                         Radio   Radio               New        
                                            GB Ireland Television  Media   Total
                                          £000    £000       £000   £000    £000
                                                                                
Segment profit (operating profit before  9,420   7,036      5,258  1,969  23,683
exceptional costs)                                                              
                                                                                
                                        ------  ------     ------ ------        
                                                                                
Associate income                                                             291
                                                                                
Exceptional costs                                                          (564)
                                                                                
Net finance cost                                                         (5,759)
                                                                                
Foreign exchange loss                                                      (129)
                                                                                
                                                                          ------
                                                                                
Profit before taxation                                                    17,522
                                                                                
                                                                          ------

Year ended 31 December 2008

                                         Radio   Radio               New        
                                            GB Ireland Television  Media   Total
                                          £000    £000       £000   £000    £000
                                                                                
Segment profit (operating profit before 10,646   8,028      7,650  1,972  28,296
exceptional costs)                                                              
                                                                                
                                        ------  ------     ------ ------        
                                                                                
Associate income                                                             260
                                                                                
Exceptional costs                                                        (4,526)
                                                                                
Net finance cost                                                         (8,144)
                                                                                
Foreign exchange gain                                                        316
                                                                                
                                                                          ------
                                                                                
Profit before taxation                                                    16,202
                                                                                
                                                                          ------

3. Exceptional items

                                        Continuing   Discontinued               
                                        Operations    Operations       Total    
                                      _____________  _____________ ____________ 
                                                                                
                                        2009    2008   2009   2008  2009    2008
                                        £000    £000   £000   £000  £000    £000
                                                                                
Fundamental restructuring costs        (344) (2,859)  (309)  (719) (653) (3,578)
                                                                                
Impairment of investment               (220)   (300)      -      - (220)   (300)
                                                                                
                                      ------  ------ ------   ----  ----  ------
                                                                                
                                       (564) (3,159)  (309)  (719) (873) (3,878)
                                                                                
                                      ------  ------ ------  -----  ----  ------

Fundamental restructuring costs

In 2008, the Group undertook a review and fundamental restructuring of its
operations. This resulted in the disposal or closure of radio stations; the
consolidation of operations in both GB and Ireland; and the rationalisation of
the television operations in line with the reduction in local programming hours
introduced by Ofcom. In 2009, this fundamental restructuring continued in Radio
GB, with the further disposal or closure of loss making stations.

Impairment of investments

In 2008 Channel 4 cancelled its plans to invest further in a new digital radio
platform and thus the 4 Digital consortium which it led. Following this
decision, in 2008 UTV wrote off its 10% investment in the 4Digital.

Independent Network News, the provider of a news service to the radio stations
in Ireland, closed at the end of October 2009. Radio Ireland has a commitment
to help fund the closure and wind-up costs of this business. Consequently, the
group invested the necessary funds in this company but immediately recognised
impairment on this investment.

Exceptional finance charges of £1,367,000 in 2008 relate to costs incurred on
the financing of the acquisition of FM104 in April 2008 and the deferred
financing costs in respect of the original debt facilities as part of the
refinancing of the Group debt facilities in July 2008.

The exceptional tax charge of £1,492,000 (2008: charge of £378,000) is
explained within note 4.

4. Taxation

(a) Tax on profit on ordinary activities

                                                                 2009      2008
                                                                 £000      £000
                                                                               
Current income tax:                                                            
                                                                               
UK corporation tax on profits for the year                      (482)   (1,090)
                                                                               
Adjustments in respect of previous years                          470       800
                                                                               
                                                               ------    ------
                                                                               
                                                                 (12)     (290)
                                                                               
                                                              -------    ------
                                                                               
Foreign tax:                                                                   
                                                                               
ROI corporation tax on profits for the year                     (376)     (764)
                                                                               
Adjustments in respect of previous years                         (34)         -
                                                                               
                                                               ------    ------
                                                                               
                                                                (410)     (764)
                                                                               
                                                               ------    ------
                                                                               
Total current tax                                               (422)   (1,054)
                                                                               
Deferred tax:                                                                  
                                                                               
Origination and reversal of timing differences                (3,348)   (2,931)
                                                                               
Adjustments in respect of previous years                          232         -
                                                                               
                                                               ------    ------
                                                                               
Tax charge in the income statement on operating activities    (3,538)   (3,985)
                                                                               
Tax credit arising on exceptional costs                            79       991
                                                                               
Exceptional deferred tax (charge)/credit                      (1,561)   (1,319)
                                                                               
                                                               ------    ------
                                                                               
Total tax (charge)/credit                                     (5,020)   (4,313)
                                                                               
                                                               ------    ------
                                                                               
The tax charge in the Income Statement is disclosed as:                        
                                                                               
Tax expense on continuing operations                          (5,155)   (4,901)
                                                                               
Tax credit on discontinued operations                             135       588
                                                                               
                                                               ------    ------
                                                                               
Tax charge in the income statement                            (5,020)   (4,313)
                                                                               
                                                               ------    ------
                                                                               
Tax relating to items in the Statement of Comprehensive                        
Income                                                                         
                                                                               
Deferred tax:                                                                  
                                                                               
Actuarial gain on pension schemes                                 917     2,193
                                                                               
Revaluation of cash flow hedges                                 (223)       732
                                                                               
Valuation of long term incentive plan                               -     (195)
                                                                               
                                                               ------    ------
                                                                               
Tax credit/(charge) in the statement of comprehensive income      694     2,730
                                                                               
                                                               ------    ------

(b) Exceptional credit

During the year, the capital gains tax rate in the Republic of Ireland was
revised from 22% to 25% (2008: from 20% to 22%). Accordingly all the deferred
tax liabilities in respect of radio licences in the Republic of Ireland were
restated to recognise the future gains thereon at this rate. This resulted in a
net charge of £1,561,000 (2008: £1,117,000).

In 2008, the deferred tax was adjusted to reflect the phasing out of industrial
building allowances in the UK. This resulted in an exceptional charge of £
202,000 as a result of temporary differences in respect of ACA's.

5. Earnings per share

Basic earnings per share are 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 are calculated based on the profit for the
financial year attributable to equity holders of the parent adjusted for the
exceptional items. This calculation uses the weighted average number of shares
in issue during the period. The weighted average number of ordinary shares for
the year ended 31 December 2008 reflects the bonus element of the 2 for 3
rights issue of ordinary shares in July 2008.

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

Net profit attributable to equity holders

                                     2009                         2008             
                          --------------------------   -------------------------   
                                                                                   
                      Continuing Discontinued        Continuing Discontinued       
                      Operations   Operations  Total Operations   Operations  Total
                            £000         £000   £000       £000         £000   £000
                                                                                   
Net profit                11,756        (620) 11,136     11,020      (2,040)  8,980
attributable to                                                                    
equity holders                                                                     
                                                                                   
Exceptional items            564          309    873      4,526          719  5,245
                                                                                   
Taxation relating to        (69)         (10)   (79)      (941)         (50)  (991)
above items                                                                        
                                                                                   
Exceptional tax            1,561            -  1,561      1,319            -  1,319
charge                                                                             
                                                                                   
                          ------       ------ ------    -------       ------ ------
                                                                                   
Total adjusted and        13,812        (321) 13,491     15,924      (1,371) 14,553
diluted profit                                                                     
attributable to                                                                    
equity holders                                                                     
                                                                                   
                          ------       ------ ------    -------       ------ ------

Weighted average number of shares

                                                                 2009      2008
                                                            thousands thousands
                                                                               
Weighted average number of shares for basic and adjusted       95,403    77,274
earnings per share (excluding treasury shares)                                 
                                                                               
                                                               ------    ------
                                                                               
Earnings per share                                                             
                                                                               
                                                                 2009      2008
                                                                               
From continuing and discontinued operations                                    
                                                                               
Basic                                                          11.67p    11.62p
                                                                               
                                                               ------    ------
                                                                               
Adjusted and diluted adjusted                                  14.15p    18.84p
                                                                               
                                                               ------    ------
                                                                               
From continuing operations                                                     
                                                                               
Basic                                                          12.32p    14.26p
                                                                               
                                                               ------    ------
                                                                               
Adjusted and diluted adjusted                                  14.49p    20.61p
                                                                               
                                                               ------    ------
                                                                               
From discontinuing operations                                                  
                                                                               
Basic                                                         (0.65p)   (2.64p)
                                                                               
                                                               ------    ------
                                                                               
Adjusted and diluted adjusted                                 (0.34p)   (1.77p)
                                                                               
                                                               ------    ------

6. Dividends

                                                                  2009     2008
                                                                  £000     £000
                                                                               
Equity dividends on ordinary shares                                            
                                                                               
Declared and paid during the year                                              
                                                                               
Final for 2008: 2.00p (2007: 8.30p)                              1,908    4,759
                                                                               
Interim for 2009: 0.00p (2008: 3.30p)                                -    3,148
                                                                               
                                                                   ---     ----
                                                                               
Dividends paid                                                   1,908    7,907
                                                                               
                                                                ------ --------
                                                                               
Proposed for approval at Annual General Meeting                                
                                                                               
(not recognised as a liability at 31 December)                                 
                                                                               
Final dividend for 2009: 2.00p (2008: 2.00p)                     1,908    1,908
                                                                               
                                                                ------  -------

7. Financial Liabilities

                                                                 2009      2008
                                                                 £000      £000
                                                                               
Current                                                                        
                                                                               
Current instalments due on bank loans                         (8,374)   (8,650)
                                                                               
Non-current                                                                    
                                                                               
Non-current instalments due on bank loans                    (88,532) (108,267)
                                                                               
                                                               ------    ------
                                                                               
Total                                                        (96,906) (116,917)
                                                                               
                                                               ------    ------

The financial liabilities at 31 December 2009 are stated net of £594,000 (2008:
£786,000) of deferred financing costs.

8. Net Debt

                                                                 2009      2008
                                                                 £000      £000
                                                                               
Bank loans                                                   (96,906) (116,917)
                                                                               
Cash and short term deposits                                    8,434     9,280
                                                                               
                                                               ------    ------
                                                                               
Net Debt                                                     (88,472) (107,637)
                                                                               
                                                               ------    ------

9. Pension schemes

The IAS 19 deficit at 31 December 2009 is £10,999,000 compared with a deficit
of £8,593,000 at 31 December 2008. The increase in the deficit partly reflects
a substantial increase in the assumption for long term price inflation from the
start of the year from 2.9% per annum to 3.6% per annum, as indicated by
changes in the relative yields of long dated fixed interest and index linked
gilts. This increased the projected benefit payments from the Scheme. This was
further impacted by the decrease in the liability discount rate of 6.25% per
annum to 5.70% per annum. The discount rate was established using a consistent
approach on both dates, based on the yields available from corporate bonds with
an appropriate duration to the Scheme's liabilities.

There was an actuarial gain on the assets as they produced a slightly positive
return during the year.

These movements were partially offset by a payment of £950,000 to the UTV
Scheme over and above normal funding during the period. In addition to this
during the year the Group transferred certain properties to the Scheme and
entered into a five year lease of those properties at an annual rent of £92,000
per annum. The Group and the Trustees of the UTV Scheme have also entered into
an agreement which provides both parties with an option to effect a transfer of
the properties from the UTV Scheme to the Group at the end of the lease term
for consideration of £1,450,000. For accounting purposes these transactions are
treated as part of the schedule of contributions and hence are accounted for on
a cash basis, with no de-recognition of the properties or recognition of any
future liabilities in the Group's financial statements.

The Group has agreed to fund £1,181,000 each year from 2010 to 2014 in addition
to normal contributions.

10. 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 2008 has not
changed. There have been no significant related party transactions in the year
ended 31 December 2009.