GLASGOW: Scottish Media Group has issued a profits warning, blaming weak television and cinema advertising markets for its poor performance.
The ailing company, which runs the ITV commercial franchises in Scotland and owns Virgin Radio and the Pearl & Dean cinema ads business, recently pulled out of merger talks with Northern Irish media firm Ulster TV [WARC News: 22-Sept-06].
Reads an SMG statement: "Due to the high operational gearing of its television and cinema businesses, the board now believes that SMG's profits for the full year 2006 will fall materially behind its previous expectations."
Pearl & Dean has been put up for sale amid claims of significant interest by potential buyers. If a sale is achieved, says SMG, it will put the company in a much stronger financial position.
Data sourced from Brand Republic (UK); additional content by WARC staff