STV Group plc has performed strongly despite market difficulties.
- The forward order book reached £92m by the end of October.
- STV Studios secured commissions worth £15m since July.
- Advertising revenue showed resilience, up 5% in Q3.
- The focus on cost control remains pivotal for future stability.
STV Group plc has shown remarkable resilience in its latest performance report, despite facing ongoing challenges in the linear TV advertising and commissioning sectors. The company revealed in its recent update that their operations are aligned with market expectations, overcoming the constraints posed by current economic conditions.
By October’s end, STV Studios proudly announced a forward order book valued at £92 million. This achievement was bolstered by the studio’s ability to secure commissions amounting to £15 million since July, signaling robust demand and successful strategies in dealing with budget constraints.
In a period marked by economic pressures, STV’s advertising revenues stood out. The total advertising revenue before commission increased by 5% in the third quarter, exceeding prior guidance. Although the fourth quarter is predicted to see a dip due to comparably strong performances in the previous year, partially due to events like the Rugby World Cup, the overall year is expected to show a modest increase of 2-3%.
The STV Player continues to expand its content offerings, successfully capturing viewers’ interest. Notably, it has become the only platform in the UK to stream the Irish police soap drama ‘Red Rock’ fully, achieving a viewing milestone of 2 million hours since its release in September. This has positioned Red Rock as the most successful title on the STV Player this year, following other popular soap operas.
Cost control remains a focus for STV, with the company committed to a three-year savings plan. This initiative aims to achieve at least £1.5 million in savings by 2024, targeting a £5 million annual saving by 2026. Rufus Radcliffe, the new Chief Executive, expressed his admiration for STV’s solid framework and future growth potential, emphasising the company’s proactive approach to navigating a challenging market environment.
STV’s strategic foresight and adaptability are commendably guiding it through a challenging market landscape, ensuring continued success.
