STV reports robust 2018 results from strategic growth plan
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Editor
| 28 February 2019

In a year that has seen it engage fully with on-demand viewing options and boost its production business, Scotland’s leading commercial public broadcaster STV has reported what it calls strong financial performance for the full year of 2018.

For the twelve months ended 31 December 2018, STV reported revenue of £125.9 million, up 8% year-on-year, driving 6% annual rises in EBITDA and operating profit to £22.8 million and £20.1 million respectively.

STV said the rise in revenues reflected good growth across all of its divisions, namely broadcast, digital and productions. Total advertising revenue up 4% year-on-year across national, regional and digital with broadcast revenue up 3%.

Regional advertising alone climbed 24%. In a clear indication of the sector’s growing opportunity, digital revenue was up 17% on an annual basis with the line boosted by VOD revenue soaring 39%. Digital operating margin increased to 49%. STV Productions revenue rocketed 60% reflecting what the company said were increased high value commissions. This resulted in overall, non-broadcast profit up 30%, with one quarter of earnings now derived from non-linear spot advertising.

The results were said to be a product of exceptional viewing performance on screen and online. In 2018 the broadcaster enjoyed its strongest share of viewing since 2009, up 13% year on year, and the company claimed that its share was four times and five larger in Scotland respectively than commercial rivals Channel 4 and Channel 5.

Moreover, STV said that in 2018 it achieved the highest growth in share of any of the UK’s 500+ channels and delivered 99% of all commercial audiences over 500,000 in Scotland in 2018. Viewing volume up 8%, with all age groups watching more STV in 2018, including 16-34s while a news modernisation programme driving increased viewing share, with STV News at Six now the most watched news programme in Scotland. Online streams on the STV Player on-demand and catch-up service were up 24% on an annual basis, with live simulcast viewing up 81%.

Going forward STV believes that its 2018 results provide the strong foundations to deliver profitable growth with a new team and divisional structure fully in place and focused on the key growth areas. It noted strategic partnerships secured with Sky and Virgin Media increasing digital distribution and improvement in user experience and content of the STV Player, and launch of new ad-free SVOD service, STV Player+, to target the pay-TV market for first time.