STV forecasts 4% TV ad revenue decline in Q1

Taggart: popular police series is an STV production
Taggart: popular police series is an STV production

STV, the channel-three licensee in Scotland, has forecast its TV ad revenues will be down 4% year on year in the first quarter, as it reports a pre-tax loss of £900,00 after it was hit by the cost of a legal dispute with ITV.

STV has forecast its total airtime revenues will decline by 4% in the first quarter of 2012 as a 14% year-on-year increase in regional airtime is offset by an 8% year-on-year decline in national airtime revenues.

Estimates from media agencies suggest the TV ad market will be flat in the first three months of this year, but ITV, like STV, is expected to forecast a small ad revenue decline in the first quarter in its results next week.

According to STV's results for 2011, the company's total revenue was £102m, down 8.7% year on year, but excluding Pearl & Dean, which STV sold in 2010. Revenue at continuing operations decreased 2.7% year on year.

STV reported consumer revenues of £93.6m in 2011, down 1.4% year on year, as a 3% fall in national ad revenues and 13% fall in regional ad revenues was only partially offset by a 69% growth in digital ad revenues.

Profit before tax and exceptional items increased by 12% to £14m. With exceptional items including the £13.5m cost of the settlement with ITV and £1.4m of redundancy costs, the pre-tax loss was £900,000. This compares to a £3.9m pre-tax profit the previous year.

Rob Woodward, chief executive, said: "Most commentators are comfortable that it will largely be a flat year in 2012. We should benefit from the impact of the Euros [football championships], which will have a particular impact in Scotland.

"Our growth will be driven by our developing digital and production businesses. That's where we see momentum for delivering growth through this year."

Woodward said STV was on target to hit its aim of diversifying its revenue stream, so that 33% of revenues would come from non-spot by the end of 2012.

Follow Maisie McCabe on Twitter @MaisieMcCabe


0
SHARES
Comment

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs
Thousands of jobs across advertising, creative, marketing and media
  • Head of Planning Competitive Salary, negotiable for the right candidate Accord Group Limited, Central London WC1A
  • CRM - Campaign Manager £32,000 - £38,000 PLUS bonus & company benefits Comparethemarket.com, Peterborough, Cambridgeshire
  • Partnerships Manager £30,000 - £55,000 PLUS bonus & company benefits Comparethemarket.com, Peterborough, Cambridgeshire

Just published

Feel you're missing out?

GET THE
BRANDREPUBLIC
BULLETINS
Sign up

The Wall Blog

From our partners