CARLTON Communications, holder of the independent television franchise
for London during the week, reported half-yearly profits in line with
expectations at #55.1m compared with #47.4m previously.
Earnings per share advanced 14% to 18.3p and the interim dividend is
raised by 10.4% to 7.4p.
From January 1, Carlton Television became operational but the heavy
start-up costs coupled with what is seasonally the weakest period for
advertising revenue meant that the broadcast television division made a
loss of #600,000.
As well as Carlton Television, the division includes Carlton's 20%
stakes in breakfast television station GMTV and Central in the West
Midlands.
However, Carlton Television's performance was better than expected in
terms of both cost and revenues, and Michael Green, chairman of the
group, said he expected it to make a profit by the year-end.
Mr Green said that the successful launch of Carlton Television
included the introduction of 15 new programmes. ''ITV audiences have
remained strong through the changes and in London ITV continues to be
the most viewed channel''.
Elsewhere, the star performer was the video and audio production and
distribution division. It benefited from a contribution from Pickwick
and raised profit 51% to #30.8m on turnover up 85% to #207.6m. The
acquisition of Pickwick for #68m in March 1992 gave Carlton the leading
audio and video distribution company in the UK, with smaller operations
in Europe.
The video and sound production division, which includes specialist
production equipment sales to the TV industry, continued a recovery
begun last year with substantial growth in both revenue and profit. But
Carlton said the production and post-production facilities in its film
and television services division still faced an unpredictable market
that had not yet seen sustained recovery.
This division made a profit of #13.2m on turnover of #116.8m. Longer
term this division should benefit from the de-regulation taking place in
the broadcasting industry.
The group's balance sheet was strong, with net cash after all
financing costs for the launch of Carlton Television. The results were
as expected.
With over half its profits derived from outside the UK, Carlton will
be a major beneficiary of sterling's devaluation. Mr Green said the year
had ''started well'' and he was ''confident that the outcome for the
year as a whole will show continued progress''.
For the full year, helped by a positive contribution from Carlton
Television, the group is expected to make taxable profits of around
#130m compared with #102m in 1992.
In 1994, Carlton should further boost profit to about #160m. With its
leadership position in a variety of television and film service
industries the company appears well placed to benefit from growth in
these markets.
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