CARLTON REPORT HIKE IN PROFITS

Carlton Communications have reported an eight per cent increase in pre-tax profits in their preliminary statement of results for the year ended September 30, 2000.
Gerry Murphy, Chief Executive Officer, said: “We’re making progress on all fronts, expanding in ITV, driving ONdigital towards one million subscribers, growing our content and developing Technicolor’s digital business.”
The statement also showed headline pre-tax profits were up eight per cent to £342 million and turnover exceeded £2 billion.
Michael Green, Chairman of Carlton (pictured), said: “The consolidation of ITV has taken a vital step forward. While Carlton’s proposed merger with United News and Media was effectively blocked by the Competition Commission, our acquisition of HTV and the consolidation of United’s other licences creates two major companies at the heart of ITV, Britain’s most watched television channel. Looking ahead, there is significant potential for enhancing ITV’s revenues and reducing costs.”
Carlton Media profits are reportedly up 13 per cent to £201 million and sales in Carlton Productions up to 10 per cent. With their dividend up by ten per cent
Green also noted that they are now in negotiations with a strategic buyer for Technicolor and aim to conclude the deal in the coming weeks. Technicolor are to sign a contract with Microsoft for Xbox.
The report stated ONdigital were approaching one million subscribers.
Murphy said: “ONdigital is making good progress towards its goal of two million subscribers and profitability. What began as a 30-channel pay television operation is now delivering e-mail, pay-per-view, games, digital Teletext and full Internet access to its rapidly expanding customer base. Carlton’s investment in Digital Media totalled £238 million in the full year, including 50 per cent of ONdigital’s investment.”
Carlton recently reshuffled their management structure grouping their television and media businesses into two operating sectors: Channels consisting of broadcasting, advertising and digital channels businesses; and Content, which drawing together Carlton Productions, Carlton International and the New Media operations.
Technicolor and their screen advertising businesses are part of a third operating sector, Media Services.
Murphy said that a successful media business requires a combination of talent, creativity and a rigorous assessment of the risks and rewards of investing in new ventures.
He said that he was determined to make sure that Carlton attracted, retained and backed the people and businesses that would continue to make Carlton successful.
(CMcL)