Britain's Carlton Communications Plc said yesterday it had forged a 250 million euro ($228 million) pan-European Internet and interactive TV venture with broadcasters in Germany, Italy, France and Spain. Carlton, one of Britain's leading commercial broadcasters, said it had joined forces with Germany's Kirch, Italy's Mediaset , France's TF1 and Spain's Telecinco to invest in Internet and interactive projects.
The venture, one of four online deals unveiled by Carlton, brings together five of Europe's biggest television operators which together broadcast to 300 million people or over 80 percent of the European Union's population. "This is a great move and could well lead to further cooperation. Two months ago, this deal would have immediately put 50 pence on Carlton's share price but today's market is more sceptical," said Paul Richards, analyst at WestLB Panmure. Carlton, which is awaiting regulatory approval for a merger with commercial TV rival United News & Media, saw its shares rise 1.75 percent to 757p by 0930 GMT despite heavy selling in the sector in sympathy with Nasdaq's slide. Better than expected first-half results helped perk up the shares with Carlton posting strong advertising revenue growth, taking pre-tax profit before exceptionals and digital costs four percent higher to 171 million pounds ($253 million). Analysts had forecast pre-tax profit, before digital costs and exceptionals from the sale of audio manufacturer Solid State Logic, of between 152 and 164 million pounds.
"Carlton's results were just above what we were looking for. But the significant thing is the very strong TV advertising revenue rise for the third quarter which probably means the group will beat eight percent growth this year," said Nick Ward, analyst at Commerzbank, which has a "buy" on the stock. Carlton, Britain's largest television advertising sales business, said first half advertising revenues rose eight percent and the TV division is on track to reap an impressive 18 percent growth in advertising sales in the third quarter. Reuters
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