5th June 2023
Trading Update & Institutional Site Visit
Total Advertising Revenue up in Q1 with momentum continuing into Q2
· Total Advertising Revenue (TAR) up 5% in Q1 and expected to be up 15-20% in Q2 driven by Euro 2024
· Overall, H1 TAR expected to be up around 10-12%
· Current orderbook of secured future revenues in STV Studios of £86m
· 3-year cost savings plan on track to deliver £1.5m this year as guided
· UK Media Act now law, guaranteeing prominence for STV Player
Simon Pitts, STV Chief Executive, said:
"STV continues to make strong strategic progress and remains on track to deliver its ambitious growth plans out to 2026.
Total advertising revenue grew 5% in Q1, in line with guidance, and there is good advertising momentum in Q2 which we expect to be up 15-20%, driven by Euro 2024.
STV Studios continues to perform strongly, securing major new orders from Netflix, Sky and Discovery in the first half despite the challenging commissioning environment, and is on track to hit target revenues of £140m in FY26.
We have a fantastic programming line-up for the rest of 2024, kicking off next week with live and exclusive coverage of the opening game of Euro 2024 between Germany and Scotland on STV and STV Player."
STV is holding a site visit for institutional investors at its Glasgow head office today and ahead of this is pleased to provide the following trading update:
· Total advertising revenue is expected to be up around 10-12% for H1 on the back of an improving advertising market driven by Euro 2024. Q1 TAR is confirmed as up 5%, in line with previous guidance, with Q2 forecast to be up 15-20%. Within that, each of STV's advertising segments - national, regional and digital (pre sales commission) - are all expected to deliver growth in the first half of the year:
o National advertising up c.15%
o Regional advertising up c.2% (with SME customers up c.10%)
o VOD advertising on STV Player up c.10%
· STV Studios continues to perform well in a challenging commissioning market. Secured future revenues are £86m at the end of May, with new commissioning wins of c.£11m and programme deliveries of c.£12m since the previous reported orderbook of £87m in March. New dramas The Witness (Netflix) and Amadeus (Sky) are both now confirmed for 2025 delivery, changing the phasing of our revenue recognition over FY24 and FY25, and we remain on track to reach our target of £140m in FY26. These commissioning wins follow the critical and ratings successes of Criminal Record (AppleTV+) and Blue Lights series 2 (BBC) in recent weeks.
· STV's 3-year cost savings plan is on course to deliver c.£1.5m of savings in 2024, which will increase to a run rate of £5m p.a. by 2026 as previously guided, and as we modernise and simplify the business for a digital-first world.
· STV welcomes the new Media Act which received Royal Assent on 24th May. This is the most significant legislation in the media sector in over a decade - it updates regulation for the digital age, and includes guaranteed prominence for STV Player online, similar to STV's presence on broadcast platforms.
ENDS
Enquiries:
STV Group plc:
Kirstin Stevenson, Head of Communications, Tel: 07803 970106
Camarco:
Geoffrey Pelham-Lane, Partner, Tel: 07733 124 226
Ben Woodford, Partner, Tel: 07790 653 341
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