STV Group announces 3% pre-tax profit increase to £14.4m for 2012 although digital revenue falls short of target despite 84 per cent increase
STV Group has announced a year on year pre-tax profit growth of three per cent at £14.4 million for 2012.
The Scottish commercial broadcaster has announced a revenue growth of one per cent to £102.7 million for last year, with operating profit climbing by 14 per cent to £17.1 million, while the company’s net debt has decreased by 17 per cent to £45.3 million.
STV has also revealed that its digital revenue grew by 84 per cent to £6.5 million, with the digital operating profit up by 42 per cent to £1.7 million. STV had targetted a sum of £9.1 million for digital revenue during 2012 however. The company did exceed its target for page impressions to reach 20.4 million. STV also claimed that it did exceed its digital margins by 26 per cent,
Meanwhile its advertising figures dipped by 1 per cent on a national level but increased regionally by 2 per cent.
Despite exceeding its target for hours produced by one hour at 141 hours, STV Productions fell short of its revenue target with £10.2 million, a 21 per cent growth, having aimed for £12 million for the year. However production margins also fell short, reaching 2 per cent instead of the targeted 10 per cent.
Rob Woodward, chief executive officer, commented: “We have delivered strong financial results with double digit growth in operating profit and a significant reduction in net debt. Our digital and production businesses are delivering strong growth momentum with STV Productions continuing to secure new series commissions. The recommendation to renew our licences for the maximum term of 10 years provides certainty for the future and we remain on track to deliver our sustainable growth objectives.”
STV also revealed that it had paid the final settlement sum for the litigation with ITV, with a deferred consideration of £5 million also being made from the sale of Primesight, however £4.3 million was paid towards it pension deficit, which now sits at £17.7 million.