Scottish challenge to Paxman & Co as STV unveils its new politics show

The show will be anchored in its Glasgow studio by an as yet unnamed host, and Bobby Hain, director of channels, said the launch underlined the company’s commitment to “high quality” public service broadcasting.

He said: “The addition of Scotland Tonight to our evening schedule four nights a week demonstrates our increased focus on current affairs in post devolution Scotland and continued commitment to deliver a schedule that is distinctive and relevant for Scottish audiences.”

The new programme will replace the existing weekly politics show, Politics Now, and comes as the broadcaster shifts its flagship daily live show, The Hour, to a weekly slot next month. Recently The Hour’s co-presenter, Stephen Jardine, parted ways with the broadcaster to launch his own PR firm.

The announcement came as STV revealed that legal costs incurred in settling its long running dispute with ITV drove the Glasgow-based firm £6.5 million into the red in the first half of the year.

The dispute, which saw STV “opt out” of broadcasting prime time ITV hits in Scotland such as Downton Abbey, was resolved in May. The terms of the settlement came to £18m, but STV confirmed the “net impact” of cessation of hostilities will cost the firm £4.8m. As a result of the restoration of the two broadcasters’ “close relationship” STV added the second series of Downton Abbey, which stars Dame Maggie Smith, in its new autumn schedule while the first series is showing this month on Sunday afternoons.

Rob Woodward, chief executive of the group, hailed a “solid” performance which saw underlying profits rise 8 per cent to £6.5 million although turnover fell 5 per cent to £47.2m in a tough advertising market.

The firm also indicated it planned to bring back its first full-year dividend after a seven year suspension.

Woodward said the re-introduction of the divi would be a “major step forward”.

He said: “If the market continues to trade as we expect it to, we will be in a position to reinstate the dividend at the end of the year.”

The firm also shaved £5m off its pension liability after it “challenged” the “mortality funding assumptions” of its pension fund. The group’s pension short-fall, which it considers a “key risk” for the business, fell from £16.2m to £8.9m in the six months to the end of June.

Although its traditional broadcast advertising business was down, the firm’s revenues from its digital operations grew 53 per cent to £2.7m

Woodward said he expects the firm to bring in one third of its income from digital initiatives – such as its travel portal launched in partnership with Glasgow-based Barrhead Travel and its online gambling venture, STV Live Casino – by 2015.

The firm also confirmed it had secured a deal to produce a reality-style television series pilot for US television called The Kids Aren’t All Right.