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Utd News eyes Web IPOs
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February 25, 2000: 6:25 a.m. ET
TV, publishing co. forms unit for new media activities, posts 1999 loss
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LONDON (CNNfn) - U.K. broadcaster and information provider United News & Media on Friday said it may float parts of a new unit it was creating for Internet and related activities, while announcing a big increase in investment in the unit. It said it fell to a loss in 1999 amid soaring acquisition-related costs and rising spending on new ventures.
The company, owner of U.K. national newspapers including the Express and TV stations such as southern England's Meridian, said it would sink 370 million pounds ($591 million) into an Internet investment program over the next two years. It will devote 270 million pounds to European businesses and the rest to initiatives in the U.S., principally CMP.net, an online provider of information on high-tech industries.
"Partial flotations of all or parts of the new media division are also likely over the course of the next two years," said the company, which in November announced plans to merge with Carlton Communications to form the U.K.'s biggest independent TV broadcasting company.
United posted a loss of 61.1 million pounds for last year, excluding one-time items, compared with a 48 million-pound profit a year earlier.
After exceptional charges of 50 million pounds before tax - reflecting spending on a cost cutting program and to integrate a recent acquisition - the net loss was 105.4 million pounds, compared with a profit of 288 million in 1988, when profits from a divestment boosted earnings.
Chief Executive Clive Hollick predicted an upturn this year, saying "2000 is off to an encouraging start with tentative signs of a recovery in the important high-tech advertising market and ITV continuing its strong growth of last year."
The company said pretax profit excluding amortization of goodwill from recent acquisitions fell to 279 million pounds from 290.2 million in 1998, blaming the decline on weaker advertising revenue and takeover-related costs.
Revenue for 1999 fell 1.5 percent to 2,171 million pounds.
Among United's acquisitions last year was CMP Media, a publisher of technology-related magazines.
United is awaiting regulatory clearance for its planned merger with Carlton. The European Competition Commission is due to report on 16 May. 
-- from staff and wire reports
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