UTV

Numis media analyst Paul Richards has gained a place in Shares’ Top 50 calls list at position 29, following a correct valuation call on Irish media group UTV Media (UTV).

Richards, who is the company’s house broker, resumed coverage on the stock on 4 July, pointing out UTV was being unfairly marked down versus rival SMG (SMG).

The call was justified by better-than-expected interims last month, which revealed a particularly strong performance from the group’s radio operations. Overall, radio revenues were up by 15% to £36.4 million, with UK radio sales up 5% to £25 million, driven by an 18% increase in revenues at talkSPORT to £12.1 million.

Meanwhile, Irish radio revenues were 47% stronger at £11.4 million. In his resumption note Richards pointed out UTV was, at the time, trading on a PE of 6.5 versus SMG’s 9.1. Now UTV trades on a PE of 8.2.

by Simon Keane