Scottish media firm STV Group has seen profit tumble due to a flagging TV advertising environment.
In its full-year results to 31 December, the firm said operating profit fell 22 per cent year-on-year due to £20.1m “declines in higher margin linear advertising revenue and inflationary cost pressure.”
However, revenue rose 22 per cent to £168.4m from the £137.8m the year prior. Advertising revenue fell 12 per cent to £97.3m.
Net debt more than doubled year-on-year to £32.3m, up from £15.1m reflecting the amount paid for Greenbird Media Group in July 2023, and profit for the year 2023 came in 69 per cent lower than the year prior at just £5.3m.
Despite the rocky results, the dividend per share remained flat at 11.3p and STV retained its crown as the most-watched peak-time TV channel in Scotland for the fifth year in a row.
The firm also took the time to set out its new growth strategy that includes ambitious targets such as doubling studio revenue to £140m, growing digital revenues by an additional 50 per cent and achieving an additional £5m per year in cost savings.
Unusually, these lofty ambitions will be presided over by an outgoing chief executive.
Simon Pitts, who has been in the role since 2018, will depart the company for a new appointment sometime in Q1 2025.
Pitts said: “Despite the challenging commissioning environment, STV Studios had a standout 2023, propelled by fantastic dramas like Criminal Record for AppleTV+ and Screw for C4 and the transformative acquisition of Greenbird.”
“Our overall financial performance was impacted by weak linear advertising and cost inflation, as expected and related to the challenging UK macro environment, although the start of 2024 has been more encouraging.
“With STV’s latest diversification targets fully achieved, now is the right time to plan a smooth and orderly succession. As such I have informed the Board that I will step down as CEO over the next 12 months to take up a new appointment beginning in Q1 2025.