Scottish Media To Spend £10m On Web Plans

Scottish Media Group has become the latest company to unveil its internet strategy when it announced plans today to spend £10 million on the web. Reporting its year-end results today the group, which owns Grampian TV and the Glasgow Herald, said that the money will be spent increasing its online presence over the next 18 months.

The first element of its Net plans is to create a network of classified advertising sites, under the brand s1. With Flextech, a major shareholder in the group, it will then build a Scottish listings website linked to Flextech’s Scene One product.

Following the recent acquisition of Ginger Media by SMG (see Ginger Acquisition Strengthens SMG’s Presence), the combined group will devote a large proportion of the £10 million in developing Ginger Online to include a portfolio of linked internet radio stations.

The group reported record pre-tax profits for 1999 of £50 million, an increase of 9% on 1998, before exceptional charges. Total turnover was up 17% to £242.7.

Commenting on the results Don Cruickshank, chairman of SMG, said: “1999 was a significant year for SMG. Expanding nationally into two of the fastest-growing media sectors in the UK, while launching two ambitious new products, such as our Sunday newspaper and digital television channel, is a remarkable achievement in itself. To do so while generating record pre-tax profits of £50 million is doubly satisfying.”

He looked forward to the group’s further development: “With the group in such good shape, the acquisition of Ginger Media is set to transform SMG’s position, elevating the group to a new position within UK media.”

Scottish Media Group: 0141 300 3000