The company should have reported its results week ago, following the end of its financial year in December. If it had not reported by April 30, its shares would have been suspended from the London Stock Exchange.
Despite the fall in profits, SMG, which owns the two main ITV licences in Scotland as well as Virgin Radio and the Herald newspaper, said it was well positioned to deliver strong growth from any upturn in advertising.
The company said that the impact of the global advertising downturn on ITV as a whole had a knock-on effect on its television division, which comprises the Scottish and Grampian ITV licences.
The impact of the downturn, the company said, was compounded by the increase in licence costs imposed as a result of their renewal until 2011.
Total television turnover fell by 11% in 2001 to £141.6m from £159.4m last time, and operating profits reduced to £25.4m from £37.1m, a fall of 32%.
On a more positive note, SMG said that airtime sales fell by only 8%, outperforming ITV as a whole, which experienced a 14% decline year on year. This resulted in its share of net advertising revenue increasing to 6.22% from 5.88% in 2000.
Turnover at the group also fell, down from £300.5m in 2000 to £280.8m last year. Earnings before interest, tax, depreciation and amortisation dropped from £78.8m to £65.7m.
Andrew Flanagan, chief executive of SMG, said: "After one of the toughest years on record, the group remains fundamentally strong with high-margin, well-branded businesses. We acted quickly and effectively to alleviate the impact of the advertising downturn on profit and margins and we're well placed for the upturn in advertising revenues when it comes."
He added: "Meanwhile, the group is financially secure, and we continue to pursue our strategic aims. Although the timing of an upturn in advertising remains unclear, we have confidence in our strategy and we are monitoring the prospects for regulatory relaxation closely."
SMG's publishing division, comprising newspapers and magazines, is less reliant on national advertising and suffered only a 2% fall in revenues to £77.4m. Circulation revenues across its newspapers increased slightly in 2001, as a result of implementing price increases at The Herald and Sunday Herald.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)