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STV hoping for 20% advertising lift from Euro 2024

Simon Pitts
Simon Pitts: strong progress

STV expects the Euro 2024 football tournament to contribute to a 15-20% lift in advertising revenue over the summer.

Simon Pitts, chief executive, said this will build on a 5% rise in total advertising revenue in the first quarter.

He said production division STV Studios continues to perform strongly, securing new orders from Netflix, Sky and Discovery in the first half despite the challenging commissioning environment, and is on track to hit target revenues of £140m in FY26.

“We have a fantastic programming line-up for the rest of 2024, kicking off next week with live and exclusive coverage of the opening game of Euro 2024 between Germany and Scotland on STV and STV Player,” said Mr Pitts.

Ahead of a site visit for institutional investors at its Glasgow head office the company said total advertising revenue is expected to be up around 10-12% for H1 on the back of an improving advertising market driven by Euro 2024.

Each of STV’s advertising segments – national, regional and digital (pre sales commission) – are expected to deliver growth in the first half of the year. National advertising is up c.15%, regional up c.2% (with SME customers up c.10%) and VOD advertising on STV Player is up c.10%.

STV Studios has secured future revenues of £86m at the end of May, with new commissioning wins of c.£11m and programme deliveries of c.£12m since the previous reported orderbook of £87m in March. 

New dramas The Witness (Netflix) and Amadeus (Sky) are both now confirmed for 2025 delivery, changing the phasing of the company’s revenue recognition over FY24 and FY25.

These commissioning wins follow the critical and ratings successes of Criminal Record (AppleTV+) and Blue Lights series 2 (BBC) in recent weeks.

STV’s three-year cost savings plan is on course to deliver c.£1.5m of savings in 2024, which will increase to a run rate of £5m a year by 2026 as previously guided, and as the company modernises and simplifies he business for a digital-first world.

Panmure Gordon lifted its target price on the shares to 370p from 334p driven by the upgrade to 2025 figures.

Property deal

The headquarters of STV in Glasgow is one of two buildings in Scotland which have changed hands for a combined £36.6 million.

LondonMetric Property has sold the broadcaster’s 60,000 sq ft Pacific Quay home and an 85,000 sq ft office in Dundee which is occupied by BT to a single buyer.

LondonMetric acquired the assets when it merged with LXi REIT (real estate investment trust) in March this year.

Andrew Jones, chief executive of LondonMetric, said: “These are good, well-let assets. However, we continue to exit non-core sectors and geographies and reinvest in sectors where we have a competitive edge, and which are enjoying a structural tailwind.”

LondonMetric was advised by Lismore Real Estate Advisors.

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