TIDMSTVG
RNS Number : 7076W
STV Group PLC
23 April 2019
Press Release Press Release Press Release
AGM Trading Update for Q1
Positive momentum in line with expectations
23 April 2019
The following trading update will be provided to shareholders at
the Company's Annual General Meeting to be held at 11am today.
Business performance continues in line with expectations and the
guidance in the previous trading update of 28 February 2019.
Trading to the end of May 2019 is expected to be as follows:
-- Total advertising revenue across national, regional and
digital is expected to be up 1% to 2%, reflecting STV's increasing
resilience in the advertising market
-- Within that, we expect national advertising revenue to be
ahead of previous guidance, down 1% to 2%
-- Regional advertising is continuing to perform strongly, up
20% to 25% driven by the on-going success of the STV Growth Fund
which has now partnered with more than 130 Scottish advertisers,
over half of whom are new to TV
-- Digital revenues are also expected to be up 15% to 20%
reflecting continued strong growth from the STV Player
-- STV's Production business continues to perform in line with
expectations with revenues secured by end of Q1 now equivalent to
over 60% of the total achieved in 2018.
Broadcast
Advertising revenue performance is underpinned by a strong
viewing performance, with STV peak time viewing share in Q1 2019 in
line with last year's very strong Q1 and all time viewing share up
a further 4%. STV's 2018 viewing performance was its best in a
decade and this strong performance has continued in Q1 2019 with
share gains across all key demographics.
Digital
STV Player continues to grow strongly, with online viewing up
20% and streams up 28% in Q1 driven by hit dramas like Manhunt,
Cheat and The Bay.
Production
Production had secured over 60% of its 2018 revenues by the end
of Q1 2019, including a number of re-commissioned series. This
includes the BBC re-commissioning series 19 and 20 of ratings
success Antiques Road Trip and a further series (series 9) of
Celebrity Antiques Road Trip, both for delivery in 2019.
During the period, STV Productions' first ever drama commission
for the BBC, The Victim, aired in peak time on BBC1 to widespread
critical and popular acclaim, with episode 1 consolidating to over
6.5 million viewers so far. Production of a second drama commission
for BBC1, Elizabeth is Missing, will commence in July.
Investment in key creative talent has continued during the
period. Following his appointment as Managing Director of STV
Productions in November, David Mortimer has appointed well
respected producer and commissioner Craig Hunter to the key
position of Creative Director, Factual. Craig's most recent
commissioning successes include Blue Planet Live and Inside the
Factory and he has worked across a huge range of formats and
returning series. Based in Scotland, Craig's extensive experience
of production in the Nations will support the strategy to deliver
production out of Scotland for both UK and international
broadcasters. His appointment completes a very strong senior
creative team alongside Sarah Brown, Creative Director, Drama, and
Gary Chippington, Creative Director, Entertainment.
Pensions
As announced last week, agreement has been reached with the
trustees of the Company's two defined benefit pension schemes on a
deficit funding plan following the 2018 triennial valuation. This
new twelve year recovery plan will fund a pre-tax deficit of
GBP127m as at 28 February 2019 and, significantly, will result in
both schemes reaching a funding level of self sufficiency by the
end of the recovery period.
The funding plan is based on annual funding payments equivalent
to the previous recovery plan with the 2019 payment of GBP9.0m
increasing annually at 2% per annum until October 2030.
Board changes
It is confirmed that Lindsay Dixon will take up her appointment
as Chief Financial Officer on 21 May 2019. George Watt will step
down from the Board today and leave the company on 30 April 2019 to
pursue a non-executive career following over 20 years with the
Company.
Simon Pitts, Chief Executive Officer, said:
"We have made a strong start to 2019, with TV and online viewing
levels continuing their positive momentum from 2018 and total
advertising revenue also growing, demonstrating STV's increasing
resilience in the advertising market even in an uncertain economic
climate.
"Our STV Growth Fund goes from strength to strength,
underpinning strong regional advertising sales and bringing new
advertisers to television for the first time.
"We are immensely proud of our new Scottish drama series - The
Victim - which aired on BBC1 earlier this month to huge critical
and popular acclaim and represents just the sort of landmark
programming we want to do more of in future."
"We also look forward to welcoming Lindsay Dixon as Chief
Financial Officer in May and wish George Watt every success
following a stellar 20 year career at STV."
Ends
Enquiries:-
STV
Katie Martin, Communications Executive
Tel: 0141 300 3109
Anna Hendry, PR Executive
Tel: 0141 300 3830
Camarco
Geoffrey Pelham-Lane, Partner / Ben Woodford, Partner
Tel: 0203 757 4985
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END
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