Belfast-based media group UTV has reported a revenue rise of 8% in the first half of 2008, with a 4% decline in TV ad income offset by solid growth from radio, led by TalkSport.

UTV, which owns the ITV Northern Ireland franchise, saw pre-tax profit rise by 12% year on year to £10.4m, with operating profits up 32% year on year to £9.9m.

However, operating profits for UTV's TV operation fell 15% year on year to £4.7m on a fall in ad revenue for the period of 4%, to £18.3m.

UTV said it expected to "reverse" the comparative underperformance of its TV operation in the third quarter of 2008, forecasting an ad revenue decline of 5% year on year. This compares with a predicted fall of 13% across the three-month period at ITV1.

Analysts at investment bank Numis concurred with that outlook, stating that they expected UTV to "materially outperform" ITV in the third quarter.

UTV's performance across the first half of 2008 was lifted by its radio and new media businesses.

The company, which owns more than 20 radio stations in the UK and Ireland, saw operating profit in the division rise 31% year on year in the first six months of the year to £9m, with total revenue up 15% to £36.4m.

"I am particularly pleased to report strong performances in both our radio and news media divisions," said the UTV Media group chief executive, John McCann. "This is further indication that the group's decision to diversify away from a pure television offering was indeed the right one."

The company splits its radio operations into Radio Ireland and GB Radio, which includes UK national station TalkSport.

GB Radio increased revenues by 5% year on year to £25m in the first half of 2008, fuelled by an 18% boost in TalkSport's revenue to £12.1m.

UTV forecast that ad revenue at GB Radio in the third quarter was "expected to be flat", against an expected overall industry year-on-year decline of 9%.

Revenue at UTV's Irish radio operation was up 47% year on year to £18.3m, helped by the acquisition of FM104 in Dublin.

Stripping out this FM104 income, like-for-like revenues were up 24% to £9.4m year on year.

New media operating profits were up 51% year on year to £900,000, with revenue up 15% to £5.8m.

McCann said that the company's strategy was key to "protecting the group from current market volatility" and left UTV "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," he added.

"We are confident in the group's ability to deliver robust revenue and profit figures in the face of uncertain macroeconomic conditions."

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