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UTV Media sees bigger loss from Irish television channel

Published 23/06/2015, 15:34
UTV Media sees bigger loss from Irish television channel
WLG
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(Reuters) - Radio and television broadcaster UTV Media Plc (L:UTV) said it expected a deeper-than-expected full-year loss from its new Irish television channel as audience growth stalled, sending its shares down 10 percent.

UTV Media said it expected the channel to incur a loss of 11.5 million pounds ($18 million), higher than the 6 million pounds it had forecast in March.

In May, the company forecast a revenue loss of 2.5 million pounds.

UTV, which held radio rights to the 2014 FIFA World Cup, cited in March delayed deals with advertisers and slower-than-expected growth in viewership for UTV Ireland, which went on air in January.

The company, which went 'on air' as Ulster Television in 1959 after Sir Laurence Olivier delivered the first official broadcast, said on Tuesday that it had approved an "action plan" to address the audience shortfall.

The broadcaster added that it saw no significant improvement in overall audience levels at UTV Ireland for the second half of the year.

UTV Media said in August last year that it expected the operations to incur a first-year operating loss of between 2 million pounds and 3 million pounds, with a move towards profitability in the second half of 2015.

Shares in the Belfast-based company were down 10 percent at 145 pence at 0207 GMT on the London Stock Exchange.

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