MEDIA group Carlton Communications saw its shares advance 23p to 517p yesterday on better-than- expected first-half profits. The company was also able to assure the market it was on target for the autumn launch of its digital joint venture with Granada - British Digital Broadcasting (BDB).
Carlton - a major player in commercial TV and the global film industry - reported pre-tax profits up 4% from #158.6m to #165.7m after start-up costs of #6.2m for its digital TV venture. Turnover rose from #896m to #920m.
Excluding a #9.6m gain on the sale of Getty Images, Carlton's pre-tax profits were about #156m after digital TV costs.
Chairman Michael Green said three of Carlton's four divisions increased profits during the first half. Its hi-tech Quantel TV and film products business was hit by sterling's strength and economic turmoil in Asia, which slashed its operating profits 46% to #14.1m.
''In the short term, the difficult trading conditions for Quantel continue, but the company currently expects to see some improvement in the second half compared to the first,'' said Green.
Turning to the core commercial TV operations, he said the outlook for advertising in the second half was good following the sturdy first-half results.
Operating profits at the TV division rose 1% to #73.3m despite the launch of commercial rival Channel Five last year.
Profits at the film division were up from #29m to nearly #32m, boosted by its Technicolor subsidiary, which benefited from hit films such as As Good As It Gets and Flubber.
The video division enjoyed a profit increase of 11% to #40.1m.
Carlton lays claim to the largest share of advertising revenues from Britain's ITV network as a result of its licences for London weekday TV and franchises in central and western England. Advertising is expected to be boosted by World Cup matches on ITV next month.
Green said the company would submit plans by June 1 for the possible early renewal of its licences from January 1999.
Meanwhile, Carlton has revealed its schedule of block-busters for later this year. Already in production are a number of two-hour dramas and films including Laurie Lee's Cider with Rosie, Goodnight Mr Tom, starring John Thaw, and Daphne du Maurier's Frenchman's Creek.
BDB plans to launch at least 15 digital terrestrial channels to compete with BSkyB's 200-channel digital satellite service, due to start next month. Green said: ''The chief executive, Stephen Grabiner, and his management team are now in place, and plans for rolling out and marketing the service are well advanced.''
Carlton shareholders are to receive a 10% increase in the interim dividend from 4.9p to 5.4p.
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