Revenue rises 21% to GBP75.3 million, but pretax loss reaches GBP2.4 million.
STV Group, the Scottish broadcaster, announced on Tuesday that it had swung to a pretax loss in the first half of the year due to a challenging advertising market and rising costs. The company reported a loss of GBP2.4 million, compared to a profit of GBP10.6 million during the same period last year.
Despite a 21% increase in revenue to GBP75.3 million, the rise was offset by a significant increase in net operating expenses, which reached GBP72.5 million, up from GBP50.2 million.
The company’s preferred metric, adjusted operating profit, which excludes exceptional and one-off items, fell by 33% to GBP8.0 million as anticipated.
In line with last year, the board declared an interim dividend of 3.9 pence per share.
Looking ahead, STV Group expects a minimum 25% increase in total revenue for 2023. However, adjusted operating profit is projected to be lower than in 2022 due to a decline in linear advertising.
Conclusion
While STV Group experienced a loss in the first half of this year due to challenges in the advertising market and rising costs, the company remains optimistic about future revenue growth. Though adjusted operating profit is anticipated to decrease in 2023, STV Group is committed to overcoming these challenges and maintaining its position as a leading broadcaster.
