STV Group PLC Trading Statement (4586L)
January 13 2021 - 2:00AM
UK Regulatory
TIDMSTVG
RNS Number : 4586L
STV Group PLC
13 January 2021
13 January 2021
STV Group plc Trading Update
2020 operating profit expected to be comfortably ahead of market
expectations
-- STV Group plc today announces that it expects operating
profit for the year ended 31 December 2020 to be at least GBP18m,
comfortably ahead of market expectations, driven by a stronger than
expected regional and digital performance.
-- STV-controlled advertising continued to outperform the wider
advertising market, with regional advertising up 8% in H2 and down
just 5% for the full year, delivering growth in 5 of the last 6
months of 2020.
-- Video on Demand advertising on the STV Player continued its
strong growth, up 11% in H2 and +12% for the full year, finishing
2020 with 4 consecutive months of growth.
-- STV's total advertising revenue improved to broadly flat in
Q4, with November -1% and December +3%. This followed a Q3 of -4%
and Q2 of -38%. The decline in total advertising revenue for the
full year has narrowed to -10%.
-- The combination of digital revenue growth, strong cash
collection and management actions will result in the company
reporting a net debt position significantly better than current
market expectations, and less than GBP20m.
-- STV's record viewing performance on TV and online continued,
with TV viewing finishing 2020 up 14% and STV Player up 68%, the
fastest growth of any broadcaster VOD service in the UK.
-- The UK and Scottish governments have confirmed that TV
production can continue during the current lockdown, resulting in
very little impact on STV Studios' production schedule so far, with
Covid safety protocols continuing to work well.
Simon Pitts, STV Chief Executive, said:
"2020 finished strongly and we expect to report an operating
profit and net debt position well ahead of market expectations,
underscoring the resilience of our business, the loyalty of our
viewers and our strong digital growth trajectory.
We've set new viewing records on screen and online, with TV
viewing up 14% and STV Player viewing up 68% in 2020.
STV-controlled Scottish advertising and digital advertising both
continued their strong recovery in H2, driven by our advertising
Growth Fund and the continued success of our streaming service, STV
Player, which is now available in 70% of the UK's connected homes
following recent launches on Freeview, Virgin and Sky.
Despite the ongoing challenges around Covid-19, we have managed
to accelerate our strategy and remain confident in our prospects
for growth. We have a strong programme line-up in Q1 across STV and
the STV Player, with more bingeworthy drama than ever before, while
in STV Studios our slate of new commissions means that 2021
promises to be our most successful year yet."
This announcement constitutes inside information for the
purposes of article 7 of the Market Abuse Regulation (EU) No
596/2014.
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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