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| Version 1 | Version 2 |
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| STV share price up as broadcaster sees national ad revenue upswing | STV share price up as broadcaster sees national ad revenue upswing |
| (7 months later) | |
| An upswing in national advertising revenues at ITV licensee STV was hit by a big cut in spending by the Scottish government, with overall revenues for 2013 expected to be flat year on year. | An upswing in national advertising revenues at ITV licensee STV was hit by a big cut in spending by the Scottish government, with overall revenues for 2013 expected to be flat year on year. |
| National ad revenues are expected to be up by 7% in the first quarter of this year, but regional airtime revenues will decline by 16% year on year because of reduced spending by the Scottish government, leaving overall revenues up 3%. | National ad revenues are expected to be up by 7% in the first quarter of this year, but regional airtime revenues will decline by 16% year on year because of reduced spending by the Scottish government, leaving overall revenues up 3%. |
| STV has posted a pre-tax profit of £9.1m in 2012 on revenues up marginally to £102.7m, reversing a £900,000 loss in 2011 on the back of a rise in production revenue and the end of its legal battle with ITV plc. | STV has posted a pre-tax profit of £9.1m in 2012 on revenues up marginally to £102.7m, reversing a £900,000 loss in 2011 on the back of a rise in production revenue and the end of its legal battle with ITV plc. |
| The Scottish broadcaster's shares hit a 21-month high of 146p, up 16p or nearly 13%, just before midday on Wednesday. | The Scottish broadcaster's shares hit a 21-month high of 146p, up 16p or nearly 13%, just before midday on Wednesday. |
| But the broadcaster, which owns the STV (central Scotland) and Grampian ITV licences, fell short of its digital revenue targets, generating £6.5m in 2012, short of the £9.1m it had set for itself. | But the broadcaster, which owns the STV (central Scotland) and Grampian ITV licences, fell short of its digital revenue targets, generating £6.5m in 2012, short of the £9.1m it had set for itself. |
| STV Productions also fell short of its 2012 target of £12m, despite growing 21% year on year to £10.2m on the back of shows including BBC2's Celebrity Antiques Road Trip and a Jo Brand chatshow for UKTV. | STV Productions also fell short of its 2012 target of £12m, despite growing 21% year on year to £10.2m on the back of shows including BBC2's Celebrity Antiques Road Trip and a Jo Brand chatshow for UKTV. |
| The STV chief executive, Rob Woodward, said: "We have been in turnaround and we have come out of turnaround. | The STV chief executive, Rob Woodward, said: "We have been in turnaround and we have come out of turnaround. |
| "We have been focused on trying to find solutions to a large number of macro issues which we have done, including our relationship with ITV. Our strategy for the future is very clear, delivering growth through our digital businesses and our production business." | "We have been focused on trying to find solutions to a large number of macro issues which we have done, including our relationship with ITV. Our strategy for the future is very clear, delivering growth through our digital businesses and our production business." |
| On STV's missed digital revenue target, he said key digital growth areas, including video on demand, display and classified advertising were up 84% year on year. | On STV's missed digital revenue target, he said key digital growth areas, including video on demand, display and classified advertising were up 84% year on year. |
| The broadcaster said its aim of increasing non-broadcasting earnings to one-third of overall revenue by 2015 remained "on track" through continued growth of its production and digital divisions. | The broadcaster said its aim of increasing non-broadcasting earnings to one-third of overall revenue by 2015 remained "on track" through continued growth of its production and digital divisions. |
| Woodward said he expected the national advertising market to be flat in the second quarter of 2013, with a weaker quarter three before picking up again in the final three months of the year. | Woodward said he expected the national advertising market to be flat in the second quarter of 2013, with a weaker quarter three before picking up again in the final three months of the year. |
| "You do see volatility in the Scottish market because it is relatively small so a single advertiser can have quite a marked impact. Overall we have lived with that volatility through the recession," he added. | "You do see volatility in the Scottish market because it is relatively small so a single advertiser can have quite a marked impact. Overall we have lived with that volatility through the recession," he added. |
| Woodward said the indication by the culture secretary Maria Miller that the Channel 3 licences would be renewed for another 10 years was "very welcome and underlines the important role that STV and ITV play in our respective markets". | Woodward said the indication by the culture secretary Maria Miller that the Channel 3 licences would be renewed for another 10 years was "very welcome and underlines the important role that STV and ITV play in our respective markets". |
| With a referendum on Scottish independence due in 2014, Woodward said STV's news programmes had hit a 10-year ratings high with an average audience share of 27% for its flagship 6pm bulletins. | With a referendum on Scottish independence due in 2014, Woodward said STV's news programmes had hit a 10-year ratings high with an average audience share of 27% for its flagship 6pm bulletins. |
| "We are impartial when it comes to the referendum. | "We are impartial when it comes to the referendum. |
| "We have an agreement with the Scottish government that should there be an independent Scotland in 2014 they will uphold any licences that are currently in place granted through the UK government. | "We have an agreement with the Scottish government that should there be an independent Scotland in 2014 they will uphold any licences that are currently in place granted through the UK government. |
| "In the short term we wouldn't expect any major positive or negative [effects of an independent Scotland]." | "In the short term we wouldn't expect any major positive or negative [effects of an independent Scotland]." |
| New local TV services | New local TV services |
| STV will invest around £1m in its two new local TV services for Glasgow and Edinburgh but Woodward said there was "not a pot of gold there". | STV will invest around £1m in its two new local TV services for Glasgow and Edinburgh but Woodward said there was "not a pot of gold there". |
| He said the broadcaster would use existing resources as well as a tie-up with two universities, Glasgow Caledonian and Edinburgh Napier, to operate the new channels. | He said the broadcaster would use existing resources as well as a tie-up with two universities, Glasgow Caledonian and Edinburgh Napier, to operate the new channels. |
| Woodward expects them to break even by the end of their first year of operation. | Woodward expects them to break even by the end of their first year of operation. |
| "They are not insubstantial, they will cover approximately half of the Scottish population," he said. | "They are not insubstantial, they will cover approximately half of the Scottish population," he said. |
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