CONFLICTING results have come from two television broadcasting

companies, Central and HTV, with the former reporting a surge in profits

while the latter saw further losses and will pay no interim dividend.

Along with Scottish TV, Central came out very well from the auction of

independent TV broadcasting franchises, bidding just #2000. Profit has

soared from #3.4m to #15.1m in the first half year from a combination of

cost savings and a bigger share of advertising market.

All TV companies have been cutting costs, primarily through slimming

staff numbers, in the face of a difficult advertising market and the

threat of increasing competition from satellite and cable.

Central's workforce has more than halved to 944.

The group has a 20% stake in Meridian which has the franchise for the

south of England. This gives scope for savings in certain common

facilities, though they are in competition when it comes to sharing the

advertising cake.

Central chairman and chief executive Leslie Hill says the outlook for

advertising revenue remains uncertain though he predicts a successful

year overall.

The interim dividend is lifted from 7.5p to 10p and the shares jumped

69p to 1444p.

HTV, in contrast, plunged 14p to 27p on its #5m loss, slightly more

than in the same period last year, and on a gloomy statement from

chairman Louis Sherwood. The group had earlier this year been more

optimistic but this was on the assumption that the recession would lift

after the election. Now he views it as prudent to plan on the recession

lasting indefinitely.

Furthermore, HTV has commissioned a survey of likely future

advertising revenue for the industry as a whole which found that a big

drop in income was likely for next year and beyond. So the group is

aiming to reduce further its spending and to cut its overdraft.