One of the few remaining pieces of the regional independent television network has been snapped up by ITV, which has paid £100 million to buy the UTV channels in Northern Ireland.
It means that ITV owns 13 of the 15 regional licences for the Channel 3 network, with only STV’s Grampian Television and Scottish Television not part of its stable.
UTV, known as Ulster TV, will focus now on the TalkSport radio station, which it also owns. Its television division expanded into the Republic of Ireland last year, but that push came at a cost as profits crashed by 90 per cent to only £1 million in the first half. That was a result of £7.5 million in losses racked up by UTV Ireland in the period; it is forecast to make a £11.5 million loss this year.
UTV and ITV have strong commercial ties, as the Northern Irish company has long broadcast shows including Coronation Street and Emmerdale. It also produces local content, including Farming Ulster, but few of its shows have been imported and shown on English screens.
The £100 million sale means that ITV is now in direct competition with Liberty Global, its largest shareholder, in the Irish market. Liberty, which owns a near-10 per cent stake in ITV, acquired TV3, the Irish free-to-air broadcaster, in July for £57 million.
Advertisement
“We have a longstanding relationship with UTV, which has been the leading commercial broadcaster in Northern Ireland for many years, thanks to its strong regional identity and blend of excellent local programming and strong network shows,” Adam Crozier, ITV’s chief executive, said.
Mick Gilligan, head of fund research at Killik & Co, the broker, said: “The deal has been rumoured since August and is a natural acquisition for ITV, since its programming forms most of UTV’s schedule. The television assets of UTV Media reported a total revenue of £34.7 million and operating profit of £6.6 million in 2014.”
ITV shares dipped ¾p to 247½p, while UTV Media’s stock surged 10½p, more than 6 per cent, to close on 184p.
ITV has bought dozens of small production houses under the leadership of Mr Crozier to boost its ITV Studios division and reduce its dependence on advertising revenue. The company produces American reality shows, including Duck Dynastyand Cake Boss,which has made it a bid target for Liberty Global and others.
The UTV purchase is a more traditional acquisition for the company, which was formed when Carlton and Granada merged, and it will increase speculation that it could make a move on STV Group.