STV : Interim Management Statement Quarter 1

23/Apr/2014RNS Announcements

The following trading update will be provided to shareholders at the Company's Annual General Meeting to be held at 11am today.

Trading during Q1 is in line with the Board's expectations for the current financial year. The business has continued to perform well and has delivered a strong start to 2014 with satisfactory delivery of key financial and operational targets against the new KPIs announced for 2014 to 2016. Performance continues on track to fulfill the strategic aim of one third of earnings from non-broadcast services by end of 2015.

STV's total airtime revenues in Q1 have performed slightly ahead of expectations up 5% year-on-year.  National airtime revenues are up 5% and the Scottish market continues to strengthen, up 7% in the first quarter.  In the month of April we expect total airtime revenues to be up 18%, ahead of our March trading update, and indications for May are for total airtime revenues to be up 4%.  This will result in January to May total airtime revenues being up 7%.

Digital growth revenues were in line with expectations in Q1, up 15%, and are expected to be up 15-20% for the full year.

As the company continues to increase its portfolio of channels and services, a new City TV channel for Glasgow, STV Glasgow, will launch on 2nd June.  This is the first of two new City TV services that will launch this year following the award of licences by Ofcom to deliver City television services in Glasgow and Edinburgh. STV Glasgow will provide peak time coverage every day of the week offering an entertaining mix of news and features, live and interactive formats, and quality acquired and archive programming and has a potential reach of two million viewers.

STV Productions has continued to grow in line with expectations during the period with a number of returning series commissioned including Antiques Road Trip, Celebrity Antiques Road Trip and Catchphrase all of which are currently on air, and new commissions including The Link,Let Me Entertain You and a pilot for BBC One of the first fully interactive quiz show format.

Rob Woodward, Chief Executive Officer of STV Group plc, said: "All areas of the business are continuing to perform in line with expectations against our updated growth KPI targets and we are excited about expanding our portfolio of consumer services with the launch of the first of our City TV services, STV Glasgow, in early June. On behalf of the Board, I would like to take this opportunity to acknowledge the contribution made by Vasa Babic over the past seven years as he retires from the Board this month.