5th June 2023
Trading Update &
Institutional Site Visit
Total Advertising Revenue up
in Q1 with momentum continuing into Q2
· Total Advertising Revenue
(TAR) up 5% in Q1 and expected to be up 15-20% in Q2 driven by Euro
2024
· Overall, H1 TAR expected to
be up around 10-12%
· Current orderbook of secured
future revenues in STV Studios of £86m
· 3-year cost savings plan on
track to deliver £1.5m this year as guided
· UK Media Act now law,
guaranteeing prominence for STV Player
Simon Pitts, STV Chief Executive,
said:
"STV continues to make strong strategic progress and remains
on track to deliver its ambitious growth plans out to
2026.
Total advertising revenue grew 5% in Q1, in line with
guidance, and there is good advertising momentum in Q2 which we
expect to be up 15-20%, driven by Euro 2024.
STV Studios continues to perform strongly, securing major new
orders from Netflix, Sky and Discovery in the first half despite
the challenging commissioning environment, and is on track to hit
target revenues of £140m in FY26.
We
have a fantastic programming line-up for the rest of 2024, kicking
off next week with live and exclusive coverage of the opening game
of Euro 2024 between Germany and Scotland on STV and STV
Player."
STV is holding a site visit for
institutional investors at its Glasgow head office today and ahead
of this is pleased to provide the following trading
update:
·
Total advertising revenue is expected to be up
around 10-12% for H1 on the back of an improving advertising market
driven by Euro 2024. Q1 TAR is confirmed as up 5%, in line with
previous guidance, with Q2 forecast to be up 15-20%. Within that,
each of STV's advertising segments - national, regional and digital
(pre sales commission) - are all expected to deliver growth in the
first half of the year:
o National advertising up c.15%
o Regional advertising up c.2% (with SME customers up
c.10%)
o VOD
advertising on STV Player up c.10%
·
STV Studios continues to perform well in a
challenging commissioning market. Secured future revenues are
£86m at the end of May, with new commissioning wins of c.£11m and
programme deliveries of c.£12m since the previous reported
orderbook of £87m in March. New dramas The Witness (Netflix) and Amadeus (Sky) are both now confirmed
for 2025 delivery, changing the phasing of our revenue recognition
over FY24 and FY25, and we remain on track to reach our target of
£140m in FY26. These commissioning wins follow the critical and
ratings successes of Criminal
Record (AppleTV+) and Blue
Lights series 2 (BBC) in recent weeks.
·
STV's 3-year cost savings plan is on course to
deliver c.£1.5m of savings in 2024, which will increase to a run
rate of £5m p.a. by 2026 as previously guided, and as we modernise
and simplify the business for a digital-first world.
· STV welcomes
the new Media Act which received Royal Assent on
24th May. This is the most significant legislation
in the media sector in over a decade - it updates regulation for
the digital age, and includes guaranteed prominence for STV Player
online, similar to STV's presence on broadcast
platforms.
ENDS
Enquiries:
STV
Group plc:
Kirstin Stevenson, Head of
Communications, Tel: 07803 970106
Camarco:
Geoffrey Pelham-Lane, Partner, Tel:
07733 124 226
Ben Woodford, Partner, Tel:
07790 653 341