Carlton profits decline

May 23, 2001
Web posted at: 0821 GMT

LONDON (CNN) -- UK broadcaster Carlton Communications posted a 21 percent drop in first-half earnings as advertising revenue fell and investments grew.

Carlton said earnings before interest, tax depreciation and amortization in the six months to March 31 fell to £139.3 million ($200 million) from £176.9 million in the same period of 2000.

Carlton owns 40 percent of Independent Television (ITV), which combines UK regional terrestrial channels, and makes programmes for the ITV network such as Peak Practice and Crossroads.

 "Advertising is currently suffering in an uncertain world economic climate," said Carlton, as it reported a 6 percent fall in like-for-like advertising revenue to £332 million from £354.4 million, excluding its acquisition of Welsh TV channel HTV.

Carlton said first-half pretax profits in the six months fell 32 percent to £65.8 million from a comparable £97 million. Dividend per share was also halved to 3.27 pence from 6.55 pence in the same period a year ago.

 "Weaker demand for advertising has persisted into our third quarter, particularly from the Internet, consumer goods and telecommunications sectors, said Carlton, which declined to predict the timing of a turnaround.

The TV company said it also increased its investment in digital channel ONdigital to £83.3 million in the first half.

ONdigital, jointly owned with Granada (GAA), is to be merged in several months with ITV to create a single free-to-air, pay television and online business under one management.

Last December Carlton offloaded its film and image processing division Technicolor to the French consumer electronics company Thomson Multimedia for about $2.1 billion in cash and stock to focus on building the TV business.

In exchange for Technicolor, which accounted for half of  Carlton's total revenue, the UK company gained a 5.5 percent stake in Thomson, valued at $717 million.

Carlton (CCM) shares fell 2.9 percent to 400 pence in London trading.

Carlton sells Technicolor – Dec. 11, 2001

Carlton

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