28th Aug 2014 09:04
LONDON (Alliance News) - STV Group PLC announced an enhanced dividend policy Thursday, as it posted an improved pretax profit in the half year to end-June, while saying it continued to make progress towards its 2015 strategic aims.
STV proposed an interim dividend of 2.0 pence, and an intended final dividend of 4.0 pence, taking the total dividend for 2014 to 6.0 pence, which it said is a 200% increase on 2013.
The Scottish media company said plans to increase its dividend by a further 33% in 2015. STV had previously guided a dividend of 3.0 pence for the full year.
The company posted a pretax profit of GBP8.4 million in the six months to June 30, up from GBP6.2 million a year before, as revenue rose to GBP54.7 million from GBP51.2 million in the previous year.
In its STV Consumer business, consumer revenue rose 7%, boosted by the FIFA World Cup, and digital revenue rose 16%. The company said it expects digital revenues to continue to grow by 15% to 20% in the third quarter, and maintain this rate for the full year. It launched the first of its city television services, STV Glasgow, in June.
The launch saw a positive reaction, averaging almost 650,000 viewers in the first two months, STV said, which is 33% of the available audience. It also saw a positive response from commercial partners, with 60% of advertisers in the first three months of the channel being new customers in STV.
In STV Productions, the company continued to secure returning series commissions, including quiz show 'The Link', 'Catchphrase', 'Antiques Road Trip', 'Celebrity Antiques Road Trip' and 'The Lie'. Additionally, a one-off documentary 'Tutankhamun - The Boy Behind The Golden Mask' will be delivered in Autumn.
Looking forward, the company expects to see its STV national airtime revenues to end the third quarter up 7%. The regional market continues to be volatile, STV warned, with regional revenues down 9% in the third quarter. However, it forecasts 6% growth in the 10 month period to October.
Edison Investment Research analyst Jane Anscombe said the bolstered dividend policy reflected "not just the World Cup boost to first half profits but management?s confidence in the group?s ability to deliver sustainable profits growth, helped by rising digital revenues and falling debt."
Regarding the question of the September 18 referendum on Scottish independence, Anscombe said that "whichever way the September referendum goes STVs licences are secure, more power will be devolved to Scotland and advertiser interest is very high.?
Shares in STV were trading up 1.6% at 377.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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