Shares in Scottish free to air broadcaster STV (STVG) were trading 0.4% higher this morning at 339p, after the company announced a strong set interim results for the six months to end June 2021.
Revenues increased by 35% to £60.3m and EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 78% to £13.9 million. Profit before tax improved from a prior year loss of £4.9 million to an £8.5 million profit. The company increased its dividend by 23% to 3.7 pence per share.
CONTINUING REBOUND IN ADVERTISING
The group has been a beneficiary of the recent recovery in advertising expenditure that looks set to continue. Forward looking commentary in today’s results presentation point to a prolonged recovery in advertising revenue with total advertising revenue growth of 20%-to-25% and 25%-to-30% year on year expected during the third quarter and nine months to the end of September respectively.
One of the key elements of STV group’s growth strategy involves building a best in class production business by undertaking more acquisitions and partnerships.
Today’s announcement that the group has acquired a minority stake in Brighton based production company Hello Mary adds a new label to its expanding portfolio, and strengthens create pipeline within the unscripted genre.
Hello Mary is a relatively new business, having been founded in 2019. Nonetheless it has experienced considerable success. Its new pilot One Night Stand was recently launched on E4 and received great reviews.
