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The company results, released on Monday, show operating losses in UTV Internet of STG0.38 million for the six months ending 30 June 2001. This compares to a loss of STG0.34 million in the four-month period last year. UTV Internet's total losses for 2000 were STG0.8 million.
"We signalled our intention to bring our Internet business to profitability earlier than originally forecast and we are on target to move into profit in the second half of this year," said group chairman J B McGuckian on the subject of the loss-making Internet division. These words echoed those of John McCann, managing director, who at the announcement of the group's 2000 results in March said, "It is expected the company will move into profitability within the second half of this year."
Goodbody equity analyst, James Forbes, said that overall, UTV's results are a very good in a difficult market. "It is an amazing out turn for them," he said.
Group operating profit before amortisation of goodwill increased to STG6.90 million from STG6.87 million in 2000. There was also a STG0.43 million reduction in television operating profit to STG6.78 million from STG7.21 million the previous year, offset by a STG0.49 million operating profit contribution from the acquisition of County Media in April 2001.
County Media operating profit before goodwill amortisation in the period was STG0.49 million on turnover of STG1.29 million. Audited accounts of County Media Limited for the year ended 31 December 2000 showed operating profits before goodwill amortisation of IRSTG2.3 million on turnover of IRSTG6.4 million.
Earlier this year the company announced that upon completion of its acquisition in Cork, it will launch an Internet service in Munster which will cater specifically for users in that region through the provision of local content and interaction.
As regards the Internet division Forbes said, "The key thing with the Net is strategy," and that the generally conservative UTV would have "looked closely at costs." If they say they will be profitable by the end of the year, they will, he said.
"Despite the difficult market conditions experienced by many Internet businesses, UTV Internet increased its total subscriber base by over 25 percent in the first six months of this year and we are still on target to move into profit in the second half," said McCann. "UTV Internet subscribers now exceed 40,000 and are a broad base of both business and residential customers across Ireland."
The UTV Web site, McGuckian said, continued to support UTV's on-screen programming and news provision and now delivers over 1.2 million pages per month, double the number of six months ago.
UTV can be found at http://www.utv.co.uk/ .
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