New shows return STV to profit

Feb 20 2013

Scottish broadcaster STV returned to profit last year as its production arm was boosted by the success of hit shows including BBC2's Celebrity Antiques Road Trip.

STV posted profits of £9.1 million for 2012 against losses of £900,000 the previous year after production revenues leapt 21% to £10.2 million and as it ended a lengthy legal battle with ITV.

The group, which holds the ITV franchise for much of Scotland and has around four million viewers a month, took a final £5.3 million charge in its legal dispute with ITV, following a £13.4 million hit in 2011 after the row led to the group dropping several ITV drama series including episodes of Midsomer Murders.

STV hailed the success of its production arm in securing commissions for programmes, with the number of produced hours up 17% last year.

It also announced a third series of Celebrity Antiques Road Trip, while ITV recently commissioned STV Productions to make a one-hour celebrity special of Catchphrase as part of a new series of the game show.

And it is working on a new chat show starring comedian Jo Brand for UKTV Gold.

On an underlying basis, STV reported pre-tax profits rising by 3% to £14.4 million, while revenues edged 1% higher to £102.7 million and net debt fell 17% to £45.3 million.

Shares jumped more than 11% as STV also said national advertising revenues were expected to rise by 7% in the first quarter, although it said regional ad sales are set to be 16% lower due to the phasing of Scottish government spend.

Digital revenues rose 84% last year in growth areas, including video on demand, display and classified advertising, to £3.5 million, and are expected to rise by another 35% in the first quarter.

Paul Richards, analyst at Numis Securities, said 2013 had started "brightly" for STV, but said the timing of Easter and comparatives with last year's Euro 2012 may leave ad revenues flat overall in the first half.