SMG REPORT SEVERE DROP IN PROFITS

SCOTTISH MEDIA Group (SMG) has admitted a severe slump in ITV advertising after reporting a 30 per cent fall in profits.
SMG have said that the results reflect the severe advertising downturn in the UK. £6 million of the fall in pre-tax profits was the result of the decline in ITV advertising, £2 million was the impact of the increased cost of the ITV licences and £2 million reflected the cost of the SRH investment.
SMG also owns Virgin Radio, Grampian TV and the Herald Newspapers in Glasgow.
Andrew Flanagan, Chief Executive of SMF, said: “This is the toughest advertising market of recent times, and visibility is poor enough to make predictions unwise at present. However, we are managing businesses tightly, and we have put cost reduction measures in place early.
“Audience delivery across all media has been resilient and our cross-media strategy leaves us better placed than most to ride out the downturn. I am confident that when conditions improve, thanks to our presence across a number of media sectors, we will be able to take advantage of any upturn.” (CD)