- Thursday, October 17, 2024
STV Group shares took a hit after the Scottish broadcaster announced that it anticipates a decrease in full-year operating profit. The decline is primarily attributed to the slump in national television advertising.
At 0813 GMT, shares were down by 8.5%, or 16.25 pence, reaching 175.0 pence.
STV revealed that it projects an operating profit of approximately £20 million ($24.6 million) for 2023, compared to the previous year's figure of £25.8 million. The decline can be attributed to the weakness in linear TV advertising and the prevailing uncertainty surrounding the UK macroeconomy.
Despite these challenges, the company experienced a surge in revenue of over 30% during the first nine months of the year, amounting to £114 million. The digital and studios divisions are expected to record significant profit growth, which will outweigh the declines in linear advertising.
During the third quarter, total advertising revenue saw an improvement, meeting the 3% growth target. This positive development was mainly driven by a strong lineup of programs.
STV remains confident in its future growth prospects, underpinned by a robust content portfolio, a pipeline brimming with fresh program ideas, and a clear growth strategy. The company is well-positioned to capitalize on an upcoming economic recovery.
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