STV reports 11% ad revenue rise

STV Group, owner of Scottish ITV franchise Stv, increased TV ad revenue by 11% year on year in 2008, capturing 22% of the Scottish ad market.

The group, formerly known as SMG, said it had targeted a 21% share of the Scottish ad market in 2008. In 2007, it captured 20% of the Scottish ad market. Its broadcast sponsorship revenue increased by 50% year on year, STV said.

Looking ahead, STV warned that across the TV market, ad spend is expected to be down 17% year on year in Q1 2009, with the ITV Network down 21%, adding that Stv's ad revenue "is in line" with this.

It said that its cinema advertising business, Pearl & Dean, will be sold once "the conditions are right". Pearl & Dean has been up for sale since September 2006.

Once that business is sold, STV will have completed the disposal of its non-core assets. Last year, it sold Virgin Radio to Times of India Group for £53m.

STV repeated its call for more scheduling flexibility from ITV plc. STV has previously rejected the notion of a single UK-wide Channel 3 licence and believes the interests of Scotland, and the nations and regions of the UK, are best served by the retention of the Channel 3 network with dedicated licences providing relevant content for regional audiences.

Source: BrandRepublic