Scottish ITV licensee reports a strong set of results for 2010 due to a resurgent ad market
Scottish ITV licensee STV has reported a strong set of results for 2010 with TV revenues up 16% to �104.8m thanks to a resurgent ad market.
STV, which said that it expects the total TV ad market to remain strong in the first quarter up 10% year on year, reported revenue from its broadcasting division grew 16% to �90.3m.
While underlying results were "exceptionally strong" overall the company reported a fall in pre-tax profits from �6.1m to �3.9m. STV took a �7.2m hit from exceptional charges which included �3.5m in litigation costs in its ongoing battle with ITV, while non-cash items included a �2.7m writedown in film stock inventory value. Excluding exceptional items STV's pre-tax profit was �12.5m.
Total group revenue rose only slightly from �110m to �111.7m, although STV prefers to point to a 16% rise from �90m to �105 after stripping out the impact of the sale of the loss-making Pearl & Dean cinema ad business last May as a "discontinued" business.
Within total group revenue STV's content business was up 21% to �9.8m and digital revenues increased 50% year on year to �4.2m.
STV has forecast that the total UK TV advertising market will be up 18% this month, 3% in March for a total of 10% across the first quarter. STV's total airtime revenue is forecast to be up 6% for the first quarter with national advertising up 9% but regional advertising down 3%.
STV said the dramatically improved trading conditions would normally mean that the company would seek to re-instate a dividend this year but the board has decided that while the "intention is to resume dividend payments" this will only occur when the outcome of a raft of legal disputes with ITV is known.
The company has three legal actions pending against ITV, relating to opt-out programming, advertising and new media rights, which could amount to a �14.2m cash loss if all the cases went against the broadcaster.
Net debt rose slightly from �49m to �52m.
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Source: http://www.guardian.co.uk/media/2011/feb/24/stv-tv-revenues-advertising
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