STV reports resilient advertising revenue

Glasgow-based media firm STV Group plc on Thursday said it expects its total advertising revenue to be slightly down from a record year in 2021, with I’m a Celebrity and the FIFA World Cup 2022 boosting fourth quarter revenues.

In a trading update, STV said total it expects ad revenue for the full year 2022 to be down around 2% from £112.6 million in 2021, which the company said was a record year, and up 8% on 2019.

STV said 9-month total ad revenue was down 3%, in line with expectations and down 17% for the third quarter due to caution in the advertising market as a result of economic uncertainty in the UK.

Total advertising revenue in the fourth quarter is expected to be down around 1% “against tough comparators from 2021”, at which time total ad revenue was up 16%.

STV said the stronger performance was due to I’m a Celebrity and the FIFA World Cup 2022, with the former the most watched TV series across all UK channels in 2022 and STV’s most streamed series ever.

The company also said that England’s World Cup quarter final against France delivered STV’s highest peak time audience in 2022 at 1.6 million viewers.

STV confirmed improved STV Studios guidance for 2023, with a secured revenue between £50 million and £55 million, ahead of the company’s target to quadruple revenues to £40 million by 2023.

STV CEO Simon Pitts said: “Our recently announced partnership with ITV significantly strengthens our STV Player content and advertising proposition, while STV Studios continues to make great progress towards its goal of becoming the UK’s leading nations and regions production company.

“With over 30 new shows commissioned this year we have already secured £50 million to £55 million in revenues for 2023, significantly ahead of our target, and our commissioning pipeline continues to show good momentum.”

 

Reporter: Harvey Dorse

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