STV Group has announced a decline in its key profit metric due to lower advertising revenue and higher costs, prompting the development of a new three-year growth strategy.

Targets for Growth

The Scottish broadcaster aims to double studios revenue to £140 million ($177.7 million) with a 10% margin. It also plans to increase digital revenue by 50% to £30 million with a margin of at least 40% and raise international revenue to 15% of the group and 25% of studios revenue.

Financial Performance

In the year ending Dec. 31, group revenue reached £168.4 million, up from £137.8 million the previous year. However, total advertising revenue saw a 12% decrease to £97.3 million. Studios revenue increased to £66.8 million, while digital revenue rose by 6% to £20.2 million. Adjusted operating profit declined to £20.1 million from £25.8 million.

Future Outlook

STV foresees a 5% rise in total advertising revenue in the first quarter of this year and has already secured £87 million of future revenue, exceeding the previous year by over £30 million.

Chief Executive Simon Pitts expressed optimism for the future, highlighting the upcoming strong first-half schedule and the live coverage of UEFA Euro 2024 featuring both Scotland and England.

Dividend Declaration

The board of directors has approved a final dividend of 7.4 pence, resulting in a full-year payout of 11.3 pence per share, consistent with the previous year's amount.

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