Advertising recovery gathers steam as STV posts record growth in viewers

ADVERTISING revenues at STV are recovering at a rate ahead of expectations, driven by higher viewing numbers across its broadcasting and online platforms.

Total advertising revenues were down by four per cent during the three months to the end of September, slowing to a decline of 2% in October. Regional advertising – that controlled directly by the group – outperformed during the third quarter with an increase of 8%, while video-on-demand advertising was 10% higher.

The Glasgow-based group said total advertising revenues from January to October now stand at -13% against the same period in the previous year.

Regional advertising has shown year-on-year growth every month since July, with the group noting that its STV Growth Fund has attracted 71 new Scottish advertisers. For the 10 months to October, regional advertising is down 6% against the same period in 2019.

This performance was bolstered by record viewing growth as largely house-bound consumers have increasingly turned to television and digital channels for news and entertainment.

Television viewing volumes rose by 13% for the January to October period, with increases of 16% in September and 10% in October. Ratings were helped by the return of soaps to their full episode count after a hiatus in filming during the spring lockdown.

On the television production side, STV said it has received confirmation from the UK and Scottish governments that filming can continue during November’s lockdown in England. The group is maintaining its previous guidance on the division’s performance for a decline in revenues but “limited” impact on profitability in 2020.

Chief executive Simon Pitts said the group’s performance underlined its ability to “come through further uncertainty with confidence”.

“We remain confident in our prospects for growth, and look forward to finishing the year strongly on screen with November traditionally our biggest month of the year thanks to the return of I’m a Celebrity, while in STV Studios our 14 new commissions so far this year means that 2021 promises to be our most successful year yet,” he added.

Shares in STV closed 1.5p lower yesterday at 259.5p.