STV’s (STVG) share price shot up as much as 9 per cent in morning trading, after its half-year results indicated that the wider downturn in the advertising industry may be slowing. Indeed, the broadcaster’s ad revenues returned to growth in August, following falls of 33 per cent and 9 per cent respectively in June and July.
STV posted operating profits of £5.2m, reflecting a fall of 52 per cent. But further down the income statement, pre-tax losses came in at £4.9m - down from profits of £9.1m a year earlier. Still, the group logged its highest ever audience growth, up by 12 per cent. Lockdown viewing was up by almost a quarter, and the broadcaster held onto its position as the most popular peak-time channel in Scotland, beating both the BBC and ITV (ITV).
Production has restarted and the pipeline is filling up, with seven commissions and four recommissions, including a six-part drama series for Channel 4.
Elsewhere, management noted that the divestment of its lottery business has been delayed because of coronavirus - although chief executive Simon Pitts said that STV remains in active discussions with potential buyers.
Peel Hunt forecasts adjusted pre-tax profits and EPS of £15.3m and 32.2p for 2020, down from £21m and 44.9p in 2019.
