TV Franchise Auctions – Prospects

THAMES: Thames is still trying to reduce its costs, cutting staff to 1230 by 1993. Recent sale of BET stake to Thorn EMI valued Thms at £124.1-£148.9m Thought to have bid around £52m. Turnover – £270.6m of which advg.is 72% Est.Share of ITV ads – 16.33% (Jan’91) Households in region – 5.3m Pre-tax profit – £10.1m for 1990, down 62%

LWT: LWT has cut staff and offered incentives for key personnel to remain. Partner in Sunrise consortium bidding for Bkfst fran.Thought to have bid £40m Turnover – £352m, of which advtg is 75% Est.Share of ITV ads – 10.79% (Jan’91) Households in region – 4.9m Pre-tax profit – £9.76m for 6 months to 30/6/91, up 7%

CENTRAL: Central has recently made 470 staff redundant. Maxwell sold his stake (19.9%) in the company in Feb. for £24.6m. Also involved in bid for TVS fran. Thought to have bid under £1m Turnover – £315m, of which advtg is 74% Est.Share of ITV ads – 13.49% (Jan’91) Households in region – 4.1m Pre-tx prft- £19.2m, down 30%, for ’90

GRANADA: Bidding for Tyne Tees with Border. Chief exec left following re- financing to raise £310m. Thought to have bid around £20m. Turnover – £250m, of which advertising is 72% Est.Share of ITV ads – 11.08% (Jan’91) Households in region – 2m Pre-tax profit – £38.5m, down 40% (half year)…

YORKSHIRE: Holds a 19.97% stake in Tyne Tees, with whom it is bidding for the Granada franchise. Thought to have bid around £34m. Turnover – £94.94M,of which advg is 69% Est.Share of ITV ads – 9.04% (Jan’91) Households in region – 3m Pre-tx prfit -£6.02m for 6 mths to 4/91

TVS: One of the most vulnerable bidders TVS recorded heavy losses following its faliure to sell MTV, but announced a re-financing package, worth £30 if it retains its franchise. Rumoured to have bid £55m. Finance approved 29/8 Turnover – £262m,of which advtng is 85% Est.Share of ITV ads – 11.26% (Jan’91) Households in region – 2.5m Pre-tax prfit – a loss of £8.3m for ’90 although the UK co. made £16.8m profit.

HTV: Facing three challengers, some analysts believe that HTV’s business interests are spread too widely, with fine art & property making a third of turnover. Thought to have bid £20m+ Turnover – £178.8m,of which advg is 70% Est.Share of ITV ads – 6.32% (Jan’91) Households in region – 2m Pre-tax profit – £5.3m for ’90 (£14.5m for 12 months to 7/89)

STV: Unopposed in its bid for its franchise, for which it has bid less than £1m. Turnover – £114m, of which advertising is 80% Est.Share of ITV ads – 5.62% (Jan’91) Households in region – 1.4m Pre-tax profit – £1.16m, down 66.3% for half year to 30/6/91.

ANGLIA: More streamlined sales operat- ion through TSMS. Faces two strong rivals. Rumoured to have bid £16m. Turnover – £63.8m, of which advertising is 87% Est.Share of ITV ads – 6.84% (Jan’91) Households in region – 1.6m Pre-tax profits – £3.07m (down 62%) for six month to end-April 1991

TYNE TEES: Remains vulnerable, despite recent cost-cutting measures. Subject of a joint bid by Granada and Border. Has bid £14.5m to retain its franchise. Turnover – £62m, of which advertising is 79% Est.Share of ITV ads – 3.42% (Jan’91) Households in region – 3m Pre-tax profit – £5.8m, down 16% on ’89

TSW: TSW’s strength is perceived to be its commitment to regional television and local programming, and is planning programming in Cornish. Thought to have bid around £16m+. Turnover – £44m, of which advertising is 92% Est.Share of ITV ads – 2.4% (Jan’91) Households in region – 635,000 Pre-tax profits – £7.7m (£3.2m) for year to July 31 1990

ULSTER: Ulster is widely tipped to retain its fran. Turnover – £37m, of which advertising is 95% Est.Share of ITV ads – 1.61% (Jan’91) Households in region – 483,000 Pre-tax profit – £1.3m, up 10%, for 1st half of 1990.

GRAMPIAN: Grampian faces two bids for its franchise.Thought to have bid £1.4m Turnover – £20.75m,of which advertising is 89% Est.Share of ITV ads – 1.18% (Jan’91) Households in region – 442,000 Pre-tax profits – £2.4m,no change on 89

BORDER: Border is unopposed, and has joined Granada in a bid for the Tyne Tees franchise. As with other smaller companies, may be subject to a take- over bid after start of franchises. Turnover – £12.2m, of which advertising is 82% Est.Share of ITV ads – 0.62% (Jan’91) Households in region – 262,000 Pre-tax profit – £0.4m, down 43%, for year to April 30 1990.

CHANNEL: Channel is widely tipped to retain its franchise, but faces a surprise bid from C13. Turnover – £12m, of which advertising is 87% Est.Share of ITV ads – 0.5% (Jan’91) Households in region – 50,000 Pre-tax profits – £0.7m, down 25% on 89

TV-AM: TV-am is one of the most profit-able franchises, and as a result has attracted two strong rival bids.Its news service has been much criticised. Thought to have bid between £25m & £30m Turnover – £89.4m, of which advertising is 100% Est.Share of ITV ads – 5.3% (Jan’91) Households in region – 22m Pre-tax profit – £6.72m, down 42%, for six months to end July 1991. Shares of national ad revenue