REG - STV Group PLC - STV Group plc Trading Update

STVAnnouncement

26/11/2024 07:00

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RNS Number : 5726N  STV Group PLC  26 November 2024

 

 

 

26 November 2024

 

Trading Update

 

·   Performance in line with market expectations for full year despite
continued challenging advertising and commissioning market conditions

·   STV Studios continues to perform well; the forward orderbook remains
strong at £92m (31 October)

·   Q3 Total Advertising Revenue (TAR) (before commission) ahead of
guidance, up 5%

·   Q4 TAR expected to be down c.10% vs strong comparators that included
the Rugby World Cup

·   Full year 2024 TAR (before commission) expected to be up 2-3%

·   Cost savings plan on track to deliver at least £1.5m savings in FY24

 

Rufus Radcliffe, STV Chief Executive, said:

 

"I joined STV on 1 November and have been very impressed by its strong
foundations and prospects for future growth. I've been struck by the
creativity, dynamism and commitment of the team and I look forward to working
closely with them to build on recent successes.

 

There's no doubt that we continue to operate against a challenging advertising
and commissioning backdrop, and we will continue to take action to mitigate
against that where possible.

 

The acquisition strategy in STV Studios is helping us to deliver in a tough
market, with new commissions secured for original formats since our interim
results.

 

We expect the full year TAR to be up 2-3%, boosted by the Euros earlier this
year. The winter schedule brings the return of entertainment juggernaut, I'm A
Celebrity Get Me Out Of Here, and The 1% Club. And looking further ahead, we
have a strong drama offering at the start of 2025 on STV and STV Player."

 

Commentary

 

·    STV Group plc ("STV") today confirms performance remains in line with
market expectations, despite ongoing weakness in the linear TV advertising and
commissioning markets.

 

·    STV Studios continues to trade well, winning commissions despite
constrained budgets and delivering for our customers in a continued
inflationary environment.  The forward orderbook sits at £92m at the end of
October, with the division having delivered revenue of £24m and won
commissions with a value of £15m since end July.

 

·    Following confirmation of multiple commissions in Q3, including a
second series of global drama, Criminal Record, for Apple TV+, STV Studios
labels have secured further orders in Q4 to date.  These include two original
new formats for wholly-owned label Crackit TV - Crime Scene Cleaners (10 x
60") for Channel 4 and Hunting Britain's Bedroom Predators (3 x 90") for
Channel 5.  Both series will be delivered in 2025.

 

·    Q3 TAR (before commission) was up 5%, stronger than guided.

 

·    Q4 TAR year on year performance is impacted by strong comparators
that include the Rugby World Cup and so is expected to be down c.10%.  Total
Advertising Revenue (before commission) is expected to be up around 2-3% for
the full year.

 

·    Following the success of Brookside and Disney drama titles, STV
Player continues to acquire key content and is now the only place where UK
viewers can stream Irish police soap drama Red Rock, from start to finish for
free. Since its launch in mid-September, Red Rock has delivered 2m hours of
viewing and is currently the best performing title on STV Player this year,
after the soaps.

 

·    There continues to be a strong focus on cost control across the
business. STV's 3-year cost savings plan is on course to deliver at least
£1.5m of savings in 2024 and hit the target £5m annual run rate by the end
of 2026, as previously guided.

 

 

 

ENDS

 

 

Enquiries:

STV Group plc:

Kirstin Stevenson, Head of Communications, Tel: 07803 970106

 

Camarco:

Geoffrey Pelham-Lane, Tel: 07733 124 226

Ben Woodford, Tel: 07790 653 341

 

 

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