STV pre-tax profits down 55% in 2009

Scottish ITV licensee STV saw pre-tax profits fall 55% year on year to £5.5 million in 2009, down from £12.3 million in 2008.

Operating profit was down £4 million to £9.2 million, while total revenues were down 24% year on year to £110.2 million. After tax and exceptional items, STV made an £8.8 million loss in 2009.

Broadcasting revenues were down 13% to £77.8 million “principally due to a reduction in national and regional airtime revenues which were both down 10% and 12% respectively”.

Revenues at STV’s cinema business Pearl & Dean fell by 10%, although it forecasts that cinema ad revenues will be up 12% year on year in the first quarter of 2010.

Richard Findlay, STV Group chairman, said: “STV has delivered a strong set of results, particularly in light of the extremely challenging market conditions in 2009, including the demise of Setanta and the delay in ITV’s re-commission of Taggart.

“We have, however, concluded the successful turnaround of the business over the past three years, delivering on our promises and establishing STV as a focused and ambitious digital media company, structured to deliver shareholder value as the trading environment improves.”

Rob Woodward, chief executive officer, said: “STV is a vibrant, innovative and dynamic company with a clear strategy and a dedicated staff.  The media industry has been particularly impacted by the unprecedented economic climate through 2009 and whilst we are seeing early signs of success, we have transformed our business to ensure that STV remains strong and competitive going forward.

“We are confident that as we go into 2010, against a backdrop of improved trading conditions, STV will continue to deliver against its ambitions.”