UTV announces acquisition of DNA Internet
DNA Internet
UTV plc announces annual results for 1999 and acquisition of N.I.'s largest
internet service company - DNA
UTV plc, Northern Ireland's most popular TV channel, today announced a
record 43% increase in its operating profit to £11.9m - and the acquisition
of leading internet service company - Direct Net Access (DNA) for £4.25m.
The acquisition of DNA as a wholly owned subsidiary of UTV signals the
emergence of a major new force in the new media market.
John McCann, Managing Director, UTV plc says: "Our accounts show an
exceptional performance for 1999 with an operating profit of £11.9m up from
£8.3m last year on a turnover of £38.3m - up 3.2% from 1998. With peak time
viewing share also up to 44.2%, UTV is well positioned to take advantage of
future opportunities.
"The explosive growth of the internet is one such opportunity and our
acquisition of DNA offers us an immediate presence in this emerging market
enhancing shareholder value.
"Our investment will enable DNA to treble its workforce immediately and
provides significant funding for technological developments as well as an
increasing DNA presence in the Republic of Ireland and further afield.
"The acquisition of the province's biggest internet company is part of our
long term strategy to build on UTV's tremendous success throughout Ireland.
With the convergence of television and internet technologies, we are
perfectly placed to provide a mix of interactive, informative and
entertaining material across the traditional medium of television and now
via the internet.
"UTV's involvement with DNA will provide a major boost for local dot.com
companies. We plan to take the mystery out of the Web and bring the world of
the internet into our viewer's homes. What company is better placed to do
that, than a brand they already know and trust - UTV.
"With less than 20% of people in the UK and Republic of Ireland currently
accessing the net, there is tremendous opportunity for growth in this
market, especially when you consider more than 60% of American adults are
on-line."
Scott Taunton, Managing Director, DNA says: "As the first major N.I.
internet service company to be acquired, we are absolutely delighted to
become part of UTV. It's a perfect partnership offering both companies the
opportunity to expand and build on our individual strengths.
"With UTV's investment, we plan to take DNA from being the biggest internet
service company in Northern Ireland to a European platform. We intend to put
the DNA mark on the global map. Already we are creating more than 30 new
jobs and this will increase considerably throughout Ireland by the end of
the year."
John McCann adds: "Taking a big step into cyberspace is a natural move for
UTV. The merger of Northern Ireland's biggest media player with the fastest
growing media force will ensure that we continue to enhance the service we
provide our viewers."
Scott Taunton says: "The backing of Northern Ireland's premier television
company opens up exciting new market opportunities for DNA. It will
accelerate our growth as we begin a major new customer drive, expand our
range of business and consumer offerings and position ourselves as the
internet service company of choice across Ireland and further afield.
"Competitiveness, quality and value for money will continue to be DNA's key
selling points while investment in new technologies, facilities and staff
will enhance our capability to meet customer needs in the high growth
internet sector."
For further information contact Orla McKibbin, Head of Press and Public
Relations, UTV on (0 1232) 262188