STV expects to score with Rugby World Cup this year
STV Group said it expects major sporting events including the Rugby World Cup to help claw back some of its falling advertising revenue.
The Scottish broadcaster, which is exclusively streaming the Rugby World Cup live, is hoping this will help drive growth and offset weak advertising revenues, which fell 14 per cent in the first half of the year down from the same period in 2022.
STV has forecasted a three to five per cent increase in total advertising revenue in its third quarter, as the Women’s Football World Cup is predicted have provided a boost.
“Overall, our digital strategy is working,” claimed STV boss Simon Pitts.
“We’re expecting that more than 60 per cent of our profit will come from those new growth areas this year, reducing our reliance on traditional TV advertising and well ahead of our 50 per cent target as we become a more resilient and more balanced media business focused on the on the future.”
Jonathan Barrett, media analyst at Panmure Gordon, said that while “the impact from weaker advertising cannot be recovered… STV is executing on the strategy that is improving the group’s long-term growth potential and profit diversification.”
Barrett added that the macro environment at the moment is “tough”.
Earlier this year, STV acquired Greenbird Media, an unscripted television production network, for £24.1m today in a “transformative” drive for greater growth across the UK and globally.