Modest Revenue and Profit Drops Reported by STV

Broadcasters, STV, have published slight drops in revenue and operating profit, compared to this time last year, in their latest financial results.

Says STV, in interim figures for six months leading up to June 30, year-on-year revenue was down from £49.7 million to £47.2 million, with operating profit also down, from £8.3 million to £8.1 million.

But also down was net debt, from £60.7 million to £57.5 million.

But while revenue was down five year, digital revenues were up 53 per cent, at £2.7 million.

And both operating profit pre-exceptionals and pre-tax profit pre-exceptionals were up: one per cent at £7 million and eight per cent at £6.5 million, respectively.

In a statement issued by the company, chief executive, Rob Woodward, said: “We have transformed STV from a traditional broadcaster to a digital media company that engages with consumers across multiple platforms offering a compelling range of must-have digital services. We are excited by new technological developments that allow us to significantly extend our reach, and allow us to work with partners to deliver our unique, compelling content that can be accessed anywhere, anytime.”

Earlier this year, STV and ITV settled legal claims each had against the other, with STV calculated to be owing ITV £4.8 million.

The statement quoted, chair, Richard Findlay, saying: “Trading is in line with expectations and I am pleased to report that we continue to see encouraging growth in our digital business. The wide-ranging settlement agreed with ITV removes significant uncertainty and we look forward to a new and constructive relationship. The various legacy issues have now been closed out, resulting in a cash positive operating structure going forward. Whilst we remain cautious about the near-term TV advertising market, we have complete confidence that our strategy will continue to deliver growth with a resumption of dividends at the end of the year barring unforeseen circumstances.”

At close of play yesterday, shares in STV were trading at 107p, valuing the company at £41.8 million. 

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