Business

Assets raid at UTV after shareholders are paid £25m dividend

Belfast broadcaster’s advertising revenues drop while its profits are cut in half

UTV made the move to its new base at City Quays 2 in 2018.
UTV, which made the move to its new base at City Quays 2 in 2018, saw its revenues fall in 2023 due to a fall in advertising
By Gary McDonald

Shareholders at the former Ulster Television business were paid a total dividend of £25 million in the last trading year, its latest accounts reveal.

UTV Ltd’s 2023 financial return to Companies House shows that it paid an interim dividend of £1,250 to each of 20,000 ordinary shares. A zero dividend was paid the year before.

As a result, UTV’s net assets diminished from £33.2m at December 2022 to £10.9m at the end of 2023.

During the year the ITV-owned broadcaster generated revenues of £25.9m - a fall on the previous year’s turnover of £29.7m.

This was mainly down to its total advertising revenues (TAR) dropping by £2.8m over the year.

There was also a decline in UTV’s pre-tax profits to £4.3m from just shy of £6m the year before.

On a bottom-line basis, its retained profit almost halved from the previous year - down from £5m to £2.8m.

UTV - whose principal activity continues to be that of providing the regional television service for Northern Ireland - said there were a number risks and uncertainties facing the business.

These are considered to relate to the erosion of television’s share of advertising and also a fluctuation in the actual size of the TV advertising market, as well as a decline in audience amid competition from other commercial channels.

It also cited the impact of the contracts rights renewals remedy and the retention of key staff.

UTV's new base at City Quays, Belfast. Picture by Mal McCann.
UTV's new base at City Quays, Belfast. Picture: Mal McCann

During the year UTV had 84 staff (comprising 55 in production, 10 in administration and 19 in other departments).

And while that was one staff member more than in 2022, UTV’s overall wages bill actually came down from £5.5m to £3.7m.

In March UTV’s parent company ITV said its profits more than halved from £501m to £193m after it found it “challenging” to encourage advertisers to spend money on traditional TV commercials.

It was what the business calls “linear” advertising – the industry’s word for the ads shown on television rather than online – which really struggled.

Demolition work started in January at Havelock House, former home of UTV. Picture: Mal McCann (Mal McCann)

ITV said it had seen a “severe decline” of 15% in linear advertising, as companies that normally advertise were more cautious because of the poor global economy. But digital revenue performed much better, increasing 19% to £490m.

Since 2018 Ulster Television has operated from Belfast Harbour’s City Quays 2 waterfront building, having vacated Havelock House, its home from its foundation in 1958.

In January, despite opposition from heritage campaigners, Havelock House was controversially demolished by its owners Lotus Property, which has since formally submitted an application to build 104 social housing units at the Ormeau Road site.