SMG reported a turnover in 2002 of £278.4m compared with £280.8m last time, which it said reflected reduced network television commissions and lower radio advertising revenues.
It achieved earnings before interest, tax, depreciation and amortisation of £65.6m compared with 2001's £65.7m. Total operating profits for 2002 were £55.5m, 3% lower than last year's £57.2m.
Basic earnings per share (excluding exceptional items, online activities and goodwill amortisation) reduced accordingly to 6.1p compared with 8.4p in 2001.
Andrew Flanagan, chief executive of SMG, said: "The successful sale of our publishing business will reduce debt and sharpen our focus on the national advertising market and we are strongly placed to capitalise on the opportunities that the Communications Act will present. Overall, we remain cautious about the outlook for 2003 and we are managing the business on the basis that any material recovery in advertising markets will not occur before 2004."
SMG sold its newspaper division, which included the Herald in Glasgow, for £216m to reduce its debts. The deal awaits the clearance of the DTI.
SMG said the effects on television of the global advertising downturn eased sufficiently in the second half of 2002 to offset first-half falls in airtime revenues. However, in airtime sales, SMG outperformed the ITV Network, which fell by 1%, and it held advertising revenues at 2001 levels through a strong performance in regional airtime sales, which were up 9%.
SMG said Virgin Radio was fully exposed to the downturn and, as a result, its turnover fell by 7% to £25.9m compared with £27.9m last time. It said 2002 represented a year of transition for Virgin -- it rebuilt the station following a volatile 2001. This continues in 2003 with the launch of a £3m marketing campaign to increase the station's profile and encourage sampling.
Its Out of Home Division grew turnover strongly in 2002 to £45.4m from £33.4m, an increase of 36%. Outdoor advertising grew by 11%, in part due to an increase in panel numbers to 10,200 sites, and cinema saw revenue grow by 50%. It said the win of the UGC Cinemas contract served to underline the continuing resurgence of Pearl & Dean.
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