STV expects advertising to be ‘flat’ this year

STV, the Glasgow-based broadcaster and production company, expects advertising to be “flat” this year, according to today’s first-quarter trading update.
Catchphrase has performed well for STV. Picture: STVCatchphrase has performed well for STV. Picture: STV
Catchphrase has performed well for STV. Picture: STV

Advertising revenues during the first three months of 2013 were up by 3 per cent year-on-year, but the company expects a 4 per cent fall this month and a 2 per cent dip next month.

Analysts said that the company faces tough year-on-year comparisons due to last summer’s European Championships, but that the comparisons will then become easier later in the summer as there will be no repeat of the effect of the Olympic and Paralympic games.

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Advertisers held off on television spending during the Olympics as audience were drawn to the BBC coverage.

Rob Woodward, chief executive at STV, said: “Growth momentum continues across all areas of our business as we successfully develop new consumer services and growth in STV Productions.

“During the first quarter we have achieved sustained growth in our digital services, with double digit growth in digital revenues, building on the success delivered in 2012.”

Woodward added: “STV Productions has continued to announce new commissions in the period and continues to build a strong pipeline of commissions and prospects for future growth.

“We are delighted about the very strong ratings being achieved by Catchphrase, our latest commission from ITV.”

Paul Richards, an analyst at Numis Securities, noted: “We believe the STV update provides a solid read across to ITV, which reports on 15 May, and UTV on 16 May.”

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