John McCann, the chief executive of TalkSport-owner UTV, will talk to Sir Richard Branson’s Virgin Group about joining forces to bring back the Virgin Radio brand when it disappears later this year.

Mr McCann, who failed to win Virgin Radio in the recent auction for the former SMG assets, said that the TalkSport and Virgin Radio brands would sit particularly well together.

The Virgin Radio assets, which were sold earlier this year without the Virgin brand, are set to be renamed in the next month by new owner Times of India.

“If Virgin Group wants to speak to us about doing something with the Virgin Radio brand, we’d be very interested. It is a strong brand and we would not have bought the Virgin Radio assets without it,” said Mr McCann. He signalled that UTV would be keen to get involved in the expected relaunch, although would not provide further detail.

UTV, the owner of ITV’s Northern Ireland franchise, said pre-tax profit rose by 12 per cent year on year to £10.4 million, as strong growth in radio offset a 4 per cent fall in television advertising.

The Belfast-based group saw revenue increase 8 per cent in the first half of 2008.

Operating profit from UTV's other businesses rose 32 per cent, more than compensating for a 15 per cent decline in television operating profit amid a steep drop in television advertising revenue.

The company divides its radio operations into Radio Ireland and GB Radio, which includes its British national AM station TalkSport. Operating profit in the whole radio division rose 31 per cent year on year in the first six months of the year to £9 million, with total revenue up 15 per cent to £36.4 million.

GB Radio increased revenues by 5 per cent year on year to £25 million in the first half of 2008, fuelled by an 18 per cent boost in TalkSport's revenue to £12.1 million.

UTV has predicted that advertising revenue at GB Radio in the third quarter would be flat, against an expected overall industry year-on-year decline of 9 per cent.

Television advertising revenue in the first half fell 4 per cent to £18.3 million.

“Our television division continued to be linked to the fortunes of ITV1 where a weak marketplace coupled with the effects of Contract Rights Renewal resulted in a 3 per cent decline in advertising revenue,” said UTV in a statement to the market.

John McCann, managing director, said UTV was cautious about making acquisitions after a recent rights issue. However, he did not rule out the possibility of buying any stations that Global Radio may eventually consider making following he acquisition of GCap.

Mr McCann added the company would remain alert to opportunities but would be cautious about making acquisitions after a recent rights issue.

The interim dividend of 3.3p was down from 5.2p a year earlier, which it said indicated a full-year dividend of around 8.5p based on previous splits, and a yield above 6p

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