STV announces loss as advertising revenue falls

STV has seen national and regional advertising revenue fall

Broadcaster STV has announced a pre-tax loss of £4.9m in the first half of the year, down from a profit of £9.1m for the same period last year.

The company said its national advertising revenue had dropped by 23%. Regional performance was down 18%.

Total revenue fell 19% to £44.7m after a slight increase in online sales.

Falls in advertising revenue and the shutdown of drama productions during lockdown have hit revenues at many commercial broadcasters.

• STV profits rise sharply despite revenue drop

• STV profit 'shows growth plan starting to deliver'

• STV boss 'focused' on staying independent

However, STV chief executive Simon Pitts said the broadcaster had still made an operating profit of £5.2m in the first half of the year which was the "real measure" of the company's underlying performance.

He told BBC Radio's Good Morning Scotland programme that it had been a "challenging period" for everyone, but said he was proud at the way STV had responded.

"We haven't just survived this crisis so far - we've thrived in lots of ways while taking care of our people, our partners and our local communities along the way," he said.

STV's chief executive Simon Pitts said the outlook for the broadcaster was "more positive" going into the autumn

"We've actually seen record ratings for STV, up 25% on TV, up over 80% online and we have taken decisive action to mitigate the impact of Covid.

"Advertising trends are now starting to improve again, so the outlook is much more positive going into the autumn."

STV has made use of the UK government's furlough scheme, but Mr Pitts said there were "no plans for job cuts" as the scheme begins to wind down.

He added: "We were a strong and successful business before this crisis and the steps we have taken so far are about making sure we stay that way."