Scottish broadcaster STV has continued to diversify its business and increasingly focus on digital content. Risks have been removed through the settlement of disputes with ITV which resulted in a £13m hit in the period. Excluding this, pretax profits would have grown 8 per cent to £6.5m.
Chief executive Rob Woodward want to grow non-broadcast earnings from 7 per cent to represent 33 per cent of group sales by 2015. He wants to double STV's production revenues - which at present are just £2.2m - and grow digital offerings and drive more revenues from new products such as Daily Deals and STV Holidays. Digital revenues have grown 53 per cent year-on-year to £2.7m, with half of STV's broadcast audience now accessing its online offerings.
This should help offset "unpredictable" advertising markets which have hampered national and regional airtime revenues. National airtime sales were flat at £33.7m, and Mr Woodward expects this to remain flat for the year. Regional sales are weaker, and these are expected to contract by 5 per cent over the year.
Mr Woodward is also expecting to reinstate dividends at the full year.
Analyst Patrick Yau at Peel Hunt is expecting adjusted full-year pre-tax profits of £14.7m, giving EPS of 38.2p (2010:£11.1m/32.9p).
STV GROUP (STV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 107p | MARKET VALUE: | £41.8m | |
| TOUCH: | 109-111.75p | 12-MONTH HIGH: | 184p | LOW: 87.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | * | NET DEBT: | £57.5m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 49.7 | 3.5 | 5.3 | nil |
| 2011 | 47.2 | -6.5 | -16.8 | nil |
| % change | - | - | - | - |
*Negative shareholders funds | ||||
