STV records almost 70% rise in digital revenues in 2011

Scottish broadcaster STV recorded a 69 per cent increase in digital revenues in 2011, according to its end of year results, with its news app responsible for sending more than 50 per cent of online traffic to its news content.

Its financial report, published today, showed an increase in digital revenues from £4.2 million in 2010 to £7.1 million for 2011.

The report added that STV has seen a 36 per cent growth in unique users online, year-on-year, with more than 50 per cent of traffic to its online news coming from its iPhone and Android app.

The broadcaster also reported that consumer revenues fell from £95 million to £93.6 million, "impacted by a 3 per cent fall in national and 13 per cent fall in regional revenues".

But this was "partially offset" by the almost 70 per cent rise in digital revenues "as our online audience continued to grow and be successfully monetised", STV added.

Operating profit was up 4 per cent, before taking into account "exceptional items". The company cited the management of "a planned increase in losses in our STV Local operations" from £0.4 million in 2010 to £0.9 million in 2011, with more than 20 hyperlocal sites rolled out across Scotland.

The company also recorded a £1.4m cost "of change provision" in relation to redundancy costs "mainly in the news operations".

In October last year STV announced some changes to the structure of its news teams and studio operations after rolling out new technology in its Edinburgh and Aberdeen studios.

The reported success of this technology saw STV confirm the continuation of its local news programmes in Edinburgh and the east of Scotland.

This means STV now offers three 30 minute programmes each evening, for the east, west and north of Scotland, including a bulletin for Dundee and Tayside. Today's report says this service has seen a 7 per cent share increase year-on-year for the period of June to December.

"STV has delivered a robust set of results for 2011 against challenging economic conditions from which no consumer business is immune," STV chairman Richard Findlay said in the financial report.

"We are focused on our clear strategy and KPI targets and we continue to improve efficiencies behind the scenes, to ensure we deliver value for shareholders and a first rate and distinctive service for viewers and consumers."

Chief executive officer Rob Woodward added: "STV has an ambitious plan for growth and our strategy remains clear going forward, with investment in strategic partnerships, helping extend the STV brand in our core Scottish market and beyond.
 
"We remain committed to growing a strong, successful and dynamic STV, cementing our position as Scotland's most popular peak time TV station and leading commercial media website, and as the provider of unique digital content across multi-platforms."

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