World Cup helps STV reach 35% pre-tax profit growth to £8.4m
STV has recorded a 35 per cent growth in pre-tax profits at £8.4m following improved advertising and digital revenue during the first six months of 2014.
The Scottish commercial broadcaster released its half year results, which revealed a 7 per cent year-on-year growth in revenue at £54.7m and an operating profit increase of 20 per cent at £9.8m.
Rob Woodward, Chief Executive Officer for STV, said: “Today’s results represent a strong performance at the half year with continuing progress towards our 2015 strategic aims. The enhanced dividend policy reflects the transformation of STV to a business that is well positioned to deliver sustainable growth and returning value to shareholders.”
The consumer side of the business was strengthened as a result of the World Cup during the summer, with an operating profit of £10.9m – an increase of 25 per cent, while digital revenue grew by 16 per cent with an operating profit increase of 20 per cent to £0.5m.
Meanwhile, the recently launched City TV services, which began with STV Glasgow in June, has reached almost 650,000 viewers on average during the first two months.
STV Edinburgh remains on schedule to launch in January.
Meanwhile, the production arm of the company has also been commissioned to film 40 episodes of daytime quiz, The Link, for BBC One following an initial 25 episode run, and Catchphrase, Celebrity Antiques Road Trip and the Lie have also been renewed.
A one-off documentary for BBC1, Discovery Canada and the Smithsonian channel, Tutankhamun - The Boy Behind The Golden Mask, will also be produced for this autumn.
Looking forward, STV said that nation airtime revenue had grown by 8 per cent as a result of the World Cup, but was likely to fall during the third quarter to a 7 per cent year-on-year increase. Digital revenue was also predicted to grow by 15-20 per cent during the same period.
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