1 December 2021

STV Group PLC

Trading Update

STV on track for record year in advertising

·   Total advertising revenue for the full year 2021 up 22-24% on 2020

·   Q4 performance stronger than expected, despite tough comparators

·   Successful STV Growth Fund increased to £30m to boost Scotland's recovery in 2022

·    STV Group plc today announces that it expects Total Advertising Revenue (TAR) to be up 22-24% for the year ending 31 December 2021, delivering its highest ever advertising revenues and growth of over 10% compared to financial year 2019.

·    Within that STV expects regional advertising to finish the year strongly, up around 20% for 2021, despite only dropping 5% during 2020 when the pandemic was at its height, and 15% ahead of 2019.  

·    VOD advertising on the STV Player is expected to be up 35-40% for the full year, over 50% ahead of 2019 levels.

·    STV delivered a 9-month TAR of +28% (guidance: +25-30%) and a Q3 TAR of +22% (guidance: +20-25%). Within that regional advertising was up 13% in Q3 (guidance: +10-15%) and Q3 VOD advertising was +44% (guidance: +40-45%).

·    Q4 advertising has shown continued good momentum, despite strong comparators from Q4 2020, and is expected to deliver TAR growth of +13-15%, with regional advertising up a further 15-20% and VOD up around 10%. Within that October TAR was +15%, November +20% and December is expected to be up 5-10%.

·    Additionally, STV announces that the STV Growth Fund will be increased from £20m to £30m in 2022.  Since launch in 2018, the STV Growth Fund has allocated £15.7m across more than 700 deals with Scottish SMEs, attracting over 300 new advertisers to television.

·    Previous guidance that STV Studios is on track for its best ever financial performance in 2021, with full year revenue of £20-25m, is reconfirmed today.

STV Chief Executive Simon Pitts said:

"The speed and scale of the advertising recovery in 2021 has far exceeded our expectations and underlines the enduring power and relevance of high-quality video advertising.

"2021 will deliver STV's highest ever advertising revenues, with brands choosing broadcast and video on demand advertising to boost their post-Covid recovery due to its unrivalled levels of trust, brand safety and value.

"I'm very proud that our STV Growth Fund has now enabled over 300 Scottish SMEs to access TV advertising for the first time, including around 150 since the start of the pandemic. I'm delighted to announce that the fund will be increased to £30m in 2022 to help drive Scotland's economic recovery."

There will be a virtual capital markets event today at 2pm focusing on the Scottish advertising market. To access the event please register your attendance with angela.wilson@stv.tv.  Materials presented during this event will subsequently be made available in the Investor Relations section of the STV website.

ENDS

Enquiries:

STV Group plc:

Kirstin Stevenson, Head of Communications, Tel: 07803 970106

Camarco:

Geoffrey Pelham-Lane, Partner, Tel: 07733 124226

Ben Woodford, Partner, Tel: 07790 653 341