Revenues flatten but STV ups profits
Editor | 21-02-2013
Even though it has not been immune to the slowdown in the UK economy, Scottish independent broadcaster STV has emerged form 2012 as a leaner and more profitable concern.
According to its financial reports for the full year, STV improved its operating profit by £2.1 million year-on-year to £17.1 million, despite the fact that it pulled in only £700,000 more revenue out of a total of £102.7 million in the 12 months.
Star revenue performers were STV Productions which improved its take by 21% to £10.2 million and the digital business where revenues soared by 84% and operating profit up 42% to £1.7 million.
Looking forward, STV is pinning hopes on the proposed renewal of Channel 3 licences for maximum term of ten years which it believes will provide long-term stability and continuity for investors and stakeholders. In addition it pinpointed new Channel 3 Network affiliate arrangements as potentially securing a commercially sustainable basis.
From a commissioning basis, STV Productions has secured new commissions with 20 episodes of Celebrity Antiques Road Trip and STV expects the award of the new local TV licences in Glasgow and Edinburgh to STV to support the continued strengthening of its portfolio. Overall in 2012 the number of produced hours from STV Productions increased by 17%.
Commenting on the results, Rob Woodward, CEO, said: "We have delivered strong financial results with double digit growth in operating profit and a significant reduction in net debt. Our digital and production businesses are delivering strong growth momentum with STV Productions continuing to secure new series commissions. The recommendation to renew our licences for the maximum term of ten years provides certainty for the future and we remain on track to deliver our sustainable growth objectives."