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Interim Results

STV pre-tax profit down 26%

31 August 2017 09:56

STV's pre-tax profit fell by 26% to £7.5 million in the first half on the back of a 3% drop in revenue to £54.6 million.

Sales were impacted by a weaker national airtime market as a result of ongoing economic uncertainty.

Despite this, digital activities delivered increased revenue growth, up 14% at £4.0m.

Sponsorship revenue increased by 8% to £2.8m, and the regional airtime market position was slightly up year on year.

The newly launched service STV2 delivered a 50% increase in revenue from the former CityTV services. STV2 covers 85% of the STV licence area.

STV Productions' revenues were £2.6m, down 26%, as a result of timing of deliveries across the year.

Operating profit was £9.2m, down 16%, reflecting the weaker national airtime market with an offset from reduced programme and advertising sales costs under agreements with ITV. These agreements resulted in only 40% of the decline in national revenues flowing through to operating profit.

The first half was also impacted by the phasing of costs under the new advertising sales agreement which increased costs by £0.9m, however this will reverse in the second half of 2017, the company said.

The interim dividend was increased by 25% to 5p per share.

Rob Woodward, chief executive officer, said: "The performance of the business in the first half of 2017 is in line with expectations despite the weak advertising market.

"The board's confidence in the underlying financial strength of the business is conveyed through today's announcement of an additional return of capital to shareholders. The board expects to propose a full year dividend of 17 pence per share."

At 9:56am: (LON:STVG) STV Group PLC share price was +7.5p at 382.5p

Story provided by StockMarketWire.com

Related Company: STVG

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