Dividend up 33%
STV sees continued growth in digital activities
Programme-making division STV Productions has delivered an improved performance with a stream of new commissions announced this year.
This week the company announced a further commission from its strategic partnership with GroupM.
Rob Woodward (pictured), chief executive, said: “Our consistent delivery of sustainable growth over consecutive years continues with double digit growth in operating profit and EPS resulting in a 90% increase in digital earnings.
“Overall, consumer business revenues are up year on year with the growth trajectory in digital continuing at a significant rate, up 25%.
“The resilience of our business to fluctuations in national advertising sales is apparent with a high consumer margin being maintained despite a slight reduction in national airtime revenues.
“Our balance sheet continues to strengthen through a further reduction in net debt, down 17%, which along with our strong cash generation, underscores our financial strength.
“Our new KPI growth targets announced today demonstrate the ambition of our vision and the extent of the levels of organic growth and shareholder value we plan to continue to drive and deliver.”
The board has declared an interim dividend of 4p per share, an increase of 33%, taking the full year payment to 12p.
The balance sheet has continued to improve and net debt has reduced by 17% year on year to £29.1m which it says will provide financial flexibility.
Overall revenues are up 5% to £56.2m, with consumer business revenues up 2%, at £52.7m. Digital activities continue to deliver strong double digit growth with revenues up 25% to £3.5m. STV Productions’ revenues more than doubled on the same period last year at £3.5m. The delivery schedule for the second half of the year is forecast to continue to grow strongly year on year.
Growth in the high margin activities of regional and digital sales has driven a double digit increase in EBITDA of 15%, to £11.5m.
Operating profit before exceptional items was £11m, a 28% increase year on year and growth for the sixth consecutive year.
Profit before exceptional items and interest increased by 30% to £10.4m.