Last year Scottish media group STV publicly announced a list of 11 key performance indicators (KPIs), and of these 8 have been met or exceeded. These include raising its regional advertising market share to 25 per cent and increasing broadcast operating margins to 15 per cent - against a target of 10 per cent.
What the group failed to achieve was its digital revenue target of £5.2m - by a shortfall of £1m - and higher margins in its ventures business. However, chief executive Rob Woodward points out that digital revenues were still up 50 per cent last year, more than half of audiences are now visiting STV's websites on a monthly basis and the company has in fact raised its digital targets for 2012. He also noted that broadcasting revenues have rebounded strongly, rising 16 per cent to £90.3m, while content revenues also recovered, rising 21 per cent to £9.8m.
The pensions deficit has been significantly reduced to £16.2m, from £25.7m previously. Mr Woodward also intends on reinstating dividends, although this will only be done once the outcome of STV's ongoing legal dispute with ITV is known.
Peel Hunt are expecting 2011 adjusted EPS of 37.3p (from 32.9p in 2010), rising to 40.2p in 2012.
STV GROUP (STVG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 137p | MARKET VALUE: | £52.5m | |
| TOUCH: | 133-139p | 12-MONTH HIGH: | 137p | LOW: 46.5p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 10 | |
| NET ASSET VALUE: | * | NET DEBT: | £52.2m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p)** | Dividend per share (p)** |
|---|---|---|---|---|
| 2006 | 126 | -1.7 | 8.0 | 24.0 |
| 2007 | 120 | -22.7 | -120.0 | nil |
| 2008 | 111 | 4.9 | 3.6 | nil |
| 2009** | 90 | 6.1 | 12.3 | nil |
| 2010*** | 105 | 3.9 | 13.9 | nil |
| % change | +16 | -36 | +13 | - |
*Negative shareholders funds of £19.8m ** adjusted for 20-for-one share consolidation in 2008 | ||||
