REG - STV Group PLC - STV on track for record year in advertising

STVAnnouncement

01/12/2021 07:00

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RNS Number : 1109U  STV Group PLC  01 December 2021

 

1 December 2021

STV Group PLC

Trading Update

STV on track for record year in advertising

 

·   Total advertising revenue for the full year 2021 up 22-24% on 2020

·   Q4 performance stronger than expected, despite tough comparators

·   Successful STV Growth Fund increased to £30m to boost Scotland's
recovery in 2022

 

·    STV Group plc today announces that it expects Total Advertising
Revenue (TAR) to be up 22-24% for the year ending 31 December 2021, delivering
its highest ever advertising revenues and growth of over 10% compared to
financial year 2019.

 

·    Within that STV expects regional advertising to finish the year
strongly, up around 20% for 2021, despite only dropping 5% during 2020 when
the pandemic was at its height, and 15% ahead of 2019.

 

·    VOD advertising on the STV Player is expected to be up 35-40% for the
full year, over 50% ahead of 2019 levels.

 

·    STV delivered a 9-month TAR of +28% (guidance: +25-30%) and a Q3 TAR
of +22% (guidance: +20-25%). Within that regional advertising was up 13% in Q3
(guidance: +10-15%) and Q3 VOD advertising was +44% (guidance: +40-45%).

 

·    Q4 advertising has shown continued good momentum, despite strong
comparators from Q4 2020, and is expected to deliver TAR growth of +13-15%,
with regional advertising up a further 15-20% and VOD up around 10%. Within
that October TAR was +15%, November +20% and December is expected to be up
5-10%.

 

·    Additionally, STV announces that the STV Growth Fund will be
increased from £20m to £30m in 2022.  Since launch in 2018, the STV Growth
Fund has allocated £15.7m across more than 700 deals with Scottish SMEs,
attracting over 300 new advertisers to television.

 

·    Previous guidance that STV Studios is on track for its best ever
financial performance in 2021, with full year revenue of £20-25m, is
reconfirmed today.

 

STV Chief Executive Simon Pitts said:

 

"The speed and scale of the advertising recovery in 2021 has far exceeded our
expectations and underlines the enduring power and relevance of high-quality
video advertising.

 

"2021 will deliver STV's highest ever advertising revenues, with brands
choosing broadcast and video on demand advertising to boost their post-Covid
recovery due to its unrivalled levels of trust, brand safety and value.

 

"I'm very proud that our STV Growth Fund has now enabled over 300 Scottish
SMEs to access TV advertising for the first time, including around 150 since
the start of the pandemic. I'm delighted to announce that the fund will be
increased to £30m in 2022 to help drive Scotland's economic recovery."

 

There will be a virtual capital markets event today at 2pm focusing on the
Scottish advertising market. To access the event please register your
attendance with angela.wilson@stv.tv (mailto:angela.wilson@stv.tv) .
Materials presented during this event will subsequently be made available in
the Investor Relations section of the STV website.

ENDS

Enquiries:

STV Group plc:

Kirstin Stevenson, Head of Communications, Tel: 07803 970106

 

Camarco:

Geoffrey Pelham-Lane, Partner, Tel: 07733 124226

Ben Woodford, Partner, Tel: 07790 653 341

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