REG - STV Group PLC - Trading Update & Institutional Site Visit

STVAnnouncement

05/06/2024 07:00

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RNS Number : 1167R  STV Group PLC  05 June 2024

 

 

5(th) 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
24(th) 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

 

 

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