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.