STV Announces Record Profit

Scottish Television today announced interim results for the six months ending 30 June 1996. A record profit before tax is confirmed, up 39% to £10.3 million with turnover up 15% to £52.2 million. Operating profit from continuing operations is up 22% to £8.8 million.

Scottish Television says these figures result from a 7% improvement in advertising revenues due to “stabilisation of sales arrangements and concentrated management action on regional airtime sales in Scotland”, coupled with an increase in network programme sales and maintenance of tight cost control. Airtime advertising revenue increased by £2.5 million to £39.7 million in the first half of 1996, an improvement of 7%, while regional advertising revenues have grown by 33% in the first half of 1996. Despite this increase Scottish Television audience levels were down for the first half of 1996 at 36%. STV blames this fall on the continued growth of cable and satellite channels, and to some recovery in the BBC ratings.

Chairman Gus Macdonald comments: “Following the strong performance in the first half of the year, we are confident of achieving satisfactory growth in the full year. Scottish Television is well placed to take full advantage of the opportunities afforded by the 1996 Broadcasting Act and we look forward to the successful acquisition of Caledonian Publishing in the near future.” Scottish Television hopes to use Caledonian Publishing to build a broader media business based in Scotland which will provide additional opportunities for advertisers.

Scottish Television also announced the launch of a new option for local advertisers. From December 1^st they intend to provide cheaper access to targeted audiences by splitting their signal between the east and west of their transmission area, which is aimed at offering better value for money to smaller sub-regional advertisers.

STV also announced the launch of a new satellite channel for Scotland – see today’s Newsline.

STV: 0141 300 3000