STV reports loss as advertising revenues decline

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Broadcaster STV reported a pre-tax loss of £ 4.9million in the first half of the year, compared to a profit of £ 9.1million for the same period last year.

The company said its domestic advertising revenue fell 23%. Regional performance is down 18%.

Total revenue fell 19% to £ 44.7million after a slight increase in online sales.

Declining advertising revenue and the shutdown of drama productions during the lockdown affected the revenues of many commercial broadcasters.

However, STV chief executive Simon Pitts said the broadcaster has consistently achieved an operating profit of £ 5.2million in the first half, which was the ‘real measure’ of underlying performance of the society.

He told BBC Radio’s Good Morning Scotland that it had been a “difficult time” for everyone, but said he was proud of the way STV responded.

“We haven’t just survived this crisis so far – we’ve thrived in so many ways while taking care of our people, partners and local communities along the way,” he said. .

“We have actually seen record ratings for STV, up 25% on TV, up over 80% online, and we have taken decisive action to mitigate the impact of Covid.

“Advertising trends are starting to improve again, so the outlook is much more positive as fall dawns. “

STV used the UK government’s leave program, but Mr Pitts said there was “no plan to cut jobs” as the program began to cease.

He added: “We were a strong and successful company before this crisis and the actions we have taken so far are aimed at ensuring that we remain so. “

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