Scottish Media Group profit up 46% despite market volatility

LONDON - Scottish Media Group has reported a 46% increase in pre-tax profits for the year ending December 2005 to £20m from £13.7m, after revenue gains at Virgin Radio offset the increasing volatility in the advertising market.

SMG, which also owns Scottish TV and Grampian TV, said that Virgin Radio produced a market-leading audience share, resulting in an 11% increase in revenue. Outdoor media division Primesight also made significant gains, with revenues rising by 12%.

Andrew Flanagan, chief executive of SMG, said: "Overall, this has been a solid trading result for SMG, coupled with some positive regulatory outcomes, which has resulted in a year of strong progress."

The advertising markets remain increasingly unpredictable SMG said, adding that after a traditionally strong first quarter, advertisers tend to adopt a more conservative booking policy.

SMG's results come despite its contract with UGC Cinemas ending in January. However, the company say it is still producing "year-to-date, like-for-like comparatives" for the first quarter of 2006. SMG anticipate a stronger second quarter aided by Easter and the World Cup.

Shares in the company were trading up by 1p this morning to 84p, a rise of 1.2%.

Chris Masters, SMG chairman, said: "The group's encouraging overall performance and strong profit growth, coupled with its significant progress in new-business initiatives, has underpinned the board's confidence in the group's long-term prospects."

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