SMG Sees Profits Hit £6.7 Million For First Half 2005

Scottish Media Group (SMG) has announced a 68% increase in underlying pre-tax profits for the first six months of the year, reaching £6.7 million, up from £4.0 million this time last year.

Turnover for the Group has also enjoyed growth, rising to £94.9 million from £88.5 million in 2004, an increase of 7%, while the broadcaster’s dividend has swelled by 20% year on year.

The healthy performance seen by SMG in the first half of 2005 shows all of its businesses to have outperformed the marke, enabling the Group to increase market, share.

The continued steady performance in advertising has aided this growth along with regulatory settlements, which have resulted in lower licence fees and reduced public service broadcasting commitments.

Commenting on the Group’s results, Andrew Flanagan, chief executive of SMG said: “We have made significant process across the Group in the first half of the year with improved margins, the benefit of positive regulatory decisions in television and strengthened development prospects.”

Due to SMG’s healthy first six months, the Group has identified several growth opportunities across the business and is optimistic about the rest of 2005.

Chris Masters, chairman of SMG added: “This improvement in operational performance, coupled with the number of growth opportunities we have identified across our businesses, has underpinned our confidence in the longer term prospects of the group.”

This statement is in line with SMG’s predictions in June, when, in its annual meeting, the company claimed that it was optimistic about trading prospects for 2005, despite the strong performance in the first quarter of 2005 being followed by a more moderated growth in Q2.

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