PRE-TAX profits at UTV Media Group fell to £1 million for the first six months of the year - down from £10m over the same period in 2014.
The company, which announced this week it was in talks to sell off its television wing blamed the reduction on the cost of its UTV Ireland station.
And it said budget cuts at Stormont were affecting advertising sales on its flagship channel in the north.
Group revenue remained steady at £58.3m, up from £57.8m.
Its interim results made no mention of plans to sell the TV division but said the board had approved a "programming and marketing action plan for UTV Ireland.
UTV Media chairman Richard Huntingford said: “The challenges of establishing a new television channel are evident in these results which reflect the significant losses incurred by UTV Ireland in its first six months on air.
"Less evident, but not to be lost sight of, is the inherent value created by the establishment of a mainstream television channel in Europe’s fastest growing economy, with long term licensing, programme supply and infrastructure in place.”
UTV said a decline of 2 per cent in turnover of its Northern Ireland television business was due to an 11 per cent drop in advertising revenue that " resulted from a significant cut in expenditure by government departments in the Northern Ireland Assembly".
The group said UTV Ireland continued to perform below expectations. Audience share in the six months was 11.4 per cent, compared to an original forecast of around 15 per cent.
Operating losses at UTV Ireland amounted to £7.5m
The lack of a major summer football tournament and a "flat" UK advertising market was blame for falling revenues in the group's radio division, particularly in Britain..
Overall turnover fell to £34.6m from £38.8m with revenues Britain, including TalkSport down by £2.6m to £25.8m.
The accounts also revealed the sale of Juice FM in Liverpool for £10m had been agreed.
UTV is in the process of selling off its network of local radio stations in Britain.
Mr Huntingford said the company was "experiencing good growth from both our London and Dublin offices and this is expected to generate growth in Northern Ireland television advertising revenue of 4 per cent in the current quarter.
"However the budget impasse in the local assembly continues and this is expected to create a drag on our Northern Ireland television advertising revenue from Belfast in the third quarter.
"UTV Ireland’s progress is closely linked to the performance of ITV network’s programming, which is the mainstay of its output, and there are new series scheduled for the autumn which have been favourably commented upon. Alongside this, we are implementing an action plan which includes stronger domestic programming, more effective marketing and a better defined branding strategy."
