STV sees its advertising revenue soar

 
Steve Dinneen
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Scottish media group STV expects its advertising revenue to be up 10 per cent in the third quarter, below the overall TV market, due to weakness in its regional business.

The group says it expects the overall TV market to be up 17 per cent in the third quarter but that it was hampered by its regional business which will be down.

Turnover in the period was up 20 per cent year-on-year at £50m, while pre-tax profits rose to reach £6m.

It is now branching into new markets, including a recent deal with YouTube that will see its content syndicated in exchange for a share of the ad revenue.

It will also launch a network of hyper-local news websites in Scotland.

Chief executive Rob Woodward told City A.M.: “We’ve been through a turnaround. We are a new company with a clear focus and a new sense of purpose. It has been a very positive beginning to the year. We have a very clear organic strategy mapped out.”

ITV said earlier this month that first-half ad revenue was up 18 per cent due to a boost from the World Cup and it is expected to be up around 15 per cent in the third quarter before comparatives with 2009 toughen, making the firm more cautious for the future.