STV recovery helped by the success of digital

Published on Thursday 26 August 2010 15:01

STV, the Scottish broadcaster, yesterday confirmed recent evidence of an upturn in advertising and said it was now reaping the benefits of its digital media strategy.

Advertising revenue during the first half of the year to the end of June improved significantly, said the company. Turnover in the broadcasting division was up 21 per cent at 44 million and operating profit doubled to 8m.

Chief executive Rob Woodward said the company was now focused on "digital delivery" through various platforms. Digital revenues were up 60 per cent at 1.6m.

The company has signed deals with YouTube and Apple and is now appealing to a younger, more male and more upmarket audience.

"We are offering a different mix of programming in line with out plans," he said.

The company also signed an agreement with US production company Kinetic Content which will allow it to exchange programme formats.

It has secured a second series of Antiques Road Trip for BBC2, Missing Mums for Sky, and Real Lives and Taggart for ITV1 and UKTV.

The company is ready to launch what it calls "hyper-local websites" across Scotland, serving local communities with news, entertainment and video.

The first will be launched in North Lanarkshire next month and follows the BBC Trust's decision to axe its local websites.

Group pre-tax profit soared to 6m against 1m last time on a 20 per cent rise in turnover to 50m.

The company said the outlook for Q3 was strong though it remained cautious.

Shares rose 2.5p, or 2.8 per cent, at 93p.