STV Group (STVG) H1 2024 earnings summary

Executive summary

• Revenue up 20% to £90.4m and adjusted operating profit up 33% to £10.6m year-over-year, driven by strong growth in Studios, Digital, and Broadcast segments.

• Studios revenue surged 38% to £37.5m with a record forward order book of £101m; digital pre-commission sales rose 14%.

• Broadcast revenue increased 12% to £42.6m, with operating profit up 47% and advertising revenue up 13%, supported by Euro 2024.

• Interim dividend of 3.9p per share proposed, unchanged from 2023.

• Leadership transition underway: new CEO Rufus Radcliffe to join in November 2024.

Financial highlights

• Total revenue £90.4m (+20%); adjusted operating profit £10.6m (+33%); statutory operating profit doubled to £6.5m.

• Adjusted EPS 15.5p (+5%); statutory basic EPS 12.4p (+72%).

• Net debt at £28.0m, down from £32.3m at start of period.

• Adjusted operating margin improved to 12%, up one percentage point year-over-year.

• Cost savings of £0.7m in H1; on track to exceed £1.5m full-year target and targeting £5m annual run rate by 2026.

Outlook and guidance

• Q3 total advertising revenue expected up low single digits year-on-year; Q4 comparators remain tough due to Rugby World Cup 2023.

• Studios forward order book at £101m as of August 2024, with £34m new commissions since June; full-year Studios performance expected ahead of 2023.

• On track to deliver 2026 KPIs and financial targets, including doubling Studios revenue to £140m and growing Digital revenue by 50% to £30m.