Stv Group Plc · LSE:STVG

Stv — FY2024 Earnings Presentation

42 slides from Stv's earnings presentation, Mar 11, 2025

  1. Slide 1: Strong performance in challenging environment

    Strong performance in challenging environment​ STV Results 11 March 2025

  2. Slide 2: Agenda

    Agenda Introduction Paul Reynolds Overview Rufus Radcliffe Finance Review Lindsay Dixon Strategic Update & Outlook Rufus Radcliffe Q&A 2

  3. Slide 3: Introducing myself

    Introducing myself • Started career in advertising at McCann Erickson and J. Walter Thompson​ • 25 years experience in TV​ • Channel 4 – ran marketing and launched digital ventures – E4, More4, and 4OD • ITV – CMO, direct to consumer, streaming, data, interactive. Member of exec team for 8 yrs. Led

  4. Slide 4: Key messages

    Key messages • Financial performance as expected • Strong operating performance in challenging environment:​ • Group revenues and adjusted operating profit both up ​ • Total advertising revenue* up 5% • VOD advertising revenue (pre commission) up 9% • ​No. 1 destination for commercial viewing on a T

  5. Slide 5: Finance Review

    Finance Review Lindsay Dixon 5 The Bay, STV

  6. Slide 6: FY24 key financials

    FY24 key financials Total National Regional Total Digital Advertising Advertising Advertising Revenue Revenue* Revenue* Revenue Revenue £188.0m £102.0m £66.8m £15.6m £21.8m 2023 +12% 2023 +5% 2023 +4% 2023 +4% 2023 +8% Adjusted Adjusted Studios Adjusted Net Operating Operating Revenue EPS Debt** Pro

  7. Slide 7: Group results

    Group results 2024 £m 2023 £m Change Revenue and profit growth in Revenue - Broadcast 84.4 81.4 +4% difficult markets - Digital (net of commission) 19.5 20.2 -4% - Studios 84.1 66.8 +26% 188.0 168.4 +12% • Revenue includes 11 months of Two Cities Adjusted operating profit * 20.6 20.1 +3% Television

  8. Slide 8: Total advertising revenue

    Total advertising revenue Strong Euro-driven H1 with softer H2 due to changes in UK political backdrop 2024 vs 2023 Total Advertising Revenues £12,000 H1 H2 FY National +16% -6% +4% £10,000 Regional +1% +5% +4% £8,000 VOD (before commission) +12% +7% +9% £6,000 £4,000 TAR (before commission) +13% -3

  9. Slide 9: Advertising outlook

    Advertising outlook Visibility remains limited; late Easter makes March/April difficult to call Linear Advertising - rolling average 2019-2024 9,000 8,000 7,000 6,000 • No improvement in market relative to H2 £000 5,000 2024 4,000 3,000 2,000 1,000 • BUT linear advertising CAGR since 2019 is - only

  10. Slide 10: Adjusted operating profit

    Adjusted operating profit Cost savings and Euros-driven advertising support growth 25 20 15 10 5 0 2023 National Regional VOD VOD Studios Inflation Revenue- Digital Savings 2024 revenue commission linked investment (net) (gross) costs 10

  11. Slide 11: STV 3-year cost saving programme on track

    STV 3-year cost saving programme on track • Savings of £1.9m delivered against target of £1.5m, across: • Broadcast operations • Studios integration • In-sourcing post production • Property costs and freelancers • Further cost savings of £1.7m being targeted in FY25 • Cumulative total £3.6m on track

  12. Slide 12: Studios

    Studios Drama commissions drive YOY revenue and profit growth 2024 2023 £m £m Change Forward orderbook at end Feb-25 is £76m • Lower than previously reported due to revenue Revenue 84.1 66.8 +26% recognition on scripted programming Operating costs (78.0) (61.6) Scripted • Blue Lights S2 (BBC) delive

  13. Slide 13: The order book is strong

    The order book is strong​ Variability over last 12-18 months is due to winning and delivering major drama programming so is a good thing 120 Criminal Record 2 commission 100 80 Criminal Record Two Cities acquisition commission (Amadeus) 60 40 20 Criminal Record delivery 0 13

  14. Slide 14: Digital

    Digital Underlying performance remains strong; results impacted by first year effect of national VOD commission 2024 2023 • VOD advertising revenue c.75% of total; £m £m Change +9% pre commission Revenue (gross) 21.8 20.2 +8% • Main categories of cost are: Revenue (net) 19.5 20.2 -4% • Direct (ad-se

  15. Slide 15: Broadcast

    Broadcast Revenue and profit growth driven by Euros, with H2 ad market more subdued 2024 2023 • Regional revenue growth in line with national, £m £m Change despite c.40% reduction in SG spend yoy Revenue • Largest single operating cost is payment to - National advertising 66.8 64.1 +4% ITV for natio

  16. Slide 16: Group core net debt £28.8m with leverage 1.1x

    Group core net debt £28.8m with leverage 1.1x RCF refinanced on improved terms under new 3+1+1 deal Core Non- Total RCF Cash on corporate recourse net drawings hand debt prod fin debt 1 January 2024 (39.0) 10.0 (29.0) (3.3) (32.3) Net cash movements - 1.2 1.2 - 1.2 Net (drawdown)/repayment (1.0) - (

  17. Slide 17: Triennial valuation agreed; lower cash contributions

    Triennial valuation agreed; lower cash contributions Accounting deficit reduces by 12% 2024 2023 2022 £m £m £m • Triennial valuation agreed – slightly reduced Assets 270.8 295.4 289.8 annual contributions • No contingent cash payable until at least 2028 Liabilities (319.1) (350.2) (352.9) • Recovery

  18. Slide 18: Strategic Update & Outlook

    Strategic Update & Outlook Rufus Radcliffe 18 Unforgotten, STV

  19. Slide 19: TV is a good business

    TV is a good business…​ • It is an amazing time to be a viewer​ • TV still dominates video viewing and will continue to do so • TV is the most effective platform for advertisers​ • Media Bill secures PSM for the future​ • Demand for premium high-end content and low-cost high-volume content will cont

  20. Slide 20: STV is a great business

    STV is a great business…​ • Famous, iconic brand loved by viewers and advertisers ​ • Huge daily, weekly, monthly reach​ • Strong digital platform with excellent distribution capturing linear declines​ • Record number of advertisers​ • Fast growing, multi-award winning Studios business with a growin

  21. Slide 21: The first 100 days

    The first 100 days​ STV colleagues Customers Viewers Shareholders Glasgow Inverness Media Agencies STV Channel 9 shareholders Dundee Aberdeen Advertisers STV Player London Edinburgh Commissioners Non-STV viewers 21

  22. Slide 22: Strategic Refresh: What is STV in 2030?

    Strategic Refresh: What is STV in 2030? Building on STV Studios success story The power of our advertising platform New opportunities How do we best position STV Studios How do we remain Scotland’s strongest How do we use our platform to meet changing demand for content marketing platform? to identi

  23. Slide 23: Content

    CONTENT AUDIENCE MONETISATION 23 23

  24. Slide 24: Won 51 commissions, 37 returning series, 403 hours of TV

    Won 51 commissions 37 returning series 403 hours of TV Top 10 UK indie Blue Lights, Two Cities for BBC1 24

  25. Slide 25: Our 21 labels cover the most in-demand content genres

    Our 21 labels cover the most in-demand content genres ​ Portfolio approach​ Addressing key segments: - Premium drama - Tentpole entertainment - Low-cost/”high-volume” factual Strong returning brands​ 25

  26. Slide 26: In 2024, STV Studios had more customers than ever before

    Italia In 2024, STV Studios had more customers than ever before Deutschland 26

  27. Slide 27: Drama and formats, international distribution

    INTERNATIONAL INTERNATIONAL RECORD DISTRIBUTION DRAMA FORMATS 4500 hours The Hit List The Witness Antiques Road Trip The Fortune Hotel Amadeus Celebrity Antiques Road Trip Beat The Bridge Criminal Record LEGO Masters 27 Trucking Hell

  28. Slide 28: 2026 Content KPIs

    2026 Content KPIs 2026 ON KPI FY 2024 TARGET TRACK? # returning 37 45 series % of shows with IP 63% 75% revenues % of revenue from 45% 25% international markets The Fortune Hotel, Tuesday’s Child for ITV 28

  29. Slide 29: Audience

    CONTENT AUDIENCE MONETISATION 29 29

  30. Slide 30: Scottish viewers watch more TV than the rest of UK

    Scottish viewers watch more TV than the rest of UK STV has highest all time and peak time commercial channel share STV has a higher peak-time commercial The average Scot spends 4 hours 47 mins in front of a TV Set each day (49 minutes longer than the UK audience share in Scotland than any other aver

  31. Slide 31: In 2024, STV Player continued to grow strongly

    In 2024, STV Player continued to grow strongly MORE PEOPLE WATCHING MORE FOR LONGER 2m active registered users Over 1/ 3 of users have Viewing on STV owned & across STV owned platforms watched 5 or more titles (45% operated platforms +8% growth y-on-y) +240K (13%) y-on-y Live viewing on STV Player 1

  32. Slide 32: STV Player contributes significantly to reach

    STV Player contributes For younger viewers STV Player is significantly to reach how the majority watch drama Drama consumption Red Eye 11% of our total monthly audience watch STV Linear Player Linear Player Player only 32% 3.25m 51% STV & STV Player total monthly reach 38% 535k Avg Aud 42% H1 2024 o

  33. Slide 33: STV's content acquisitions team are fast and agile

    STV’s content acquisitions team are fast and agile​ • 117 episodes • 500 episodes • Just launched • >3.6m viewing hours • >8.9m viewing hours • No. 1 soap in New Zealand • Top 5 show since launch • Top 5 show in 2024 • Exclusive UK home • Bigger than Corrie and Emmerdale Source: Adobe Analytics, STV

  34. Slide 34: The power of live TV on STV Player

    The power of live TV – live TV on STV Player grew 18% YOY to 20 million hours • Euro 2024 was STV’s biggest • The latest series of I’m A • 6 Nations 2025 to date ever live event on STV Player Celebrity Get Me ​Out of Here • 724k streams • 2.3m viewing hours across the was biggest yet on STV Player •

  35. Slide 35: Strong subscriber growth for STV Player+

    2024 saw strong subscriber growth for STV Player+, with Premier Sports going live in Feb-25 22,000 Subscriber growth 14,000 9,500 7,000 2021 2022 2023 2024 Source: STV Player Database 35

  36. Slide 36: The Media Bill is good news

    The Media Bill is good news • The Media Bill is the most significant media legislation in over 20 years • The Media Act ensures that STV Player remains prominent and discoverable online in the same way that our STV linear broadcast channel has the right to position 3 on EPGs on TV sets • STV can als

  37. Slide 37: 2026 Audience KPIs

    2026 Audience KPIs FY 2026 ON KPI 2024 TARGET TRACK? Commercial No. 1 Stay No.1 audience share STV Player reach as % of total STV 38% 50% reach # monthly 1m 1.5m active users 148m/ 190m/ Streams & 69m 90m Consumption hours hours Playing Nice, STV & STV Player 37

  38. Slide 38: Monetisation

    CONTENT AUDIENCE MONETISATION 38 38

  39. Slide 39: STV's advertising proposition is best of both worlds

    STV’s advertising proposition is best of both worlds: ITV national scale, STV regional strength • ITV controlled revenue: Up 5% • STV controlled revenue: Up 5% • National VOD: Up 10% • Scottish VOD revenue: Up 6% • Monthly digital brand count: 364 • Monthly regional brand count: 94 • 94% of digital

  40. Slide 40: The power of STV Growth Fund

    The power of STV Growth Fund 83% saw an increase in footfall “Please just keep the Growth Fund going, as small businesses like us would not have been able to afford to advertise on TV…” Simon Nisbet, Director, Tayside Garage Doors 78% of people say it is important for them to buy from Scottish compa

  41. Slide 41: 2026 Monetisation KPIs

    2026 Monetisation KPIs FY 2026 ON KPI 2024 TARGET TRACK? % of large commercial 97% 90%+ audiences on STV Advertiser re-booking 54% 60%+ rate # new advertisers 124 75+ on STV # paying 50k+ 22k subscribers subscribers Six Nations, STV & STV Player 41

  42. Slide 42: Outlook & Summary

    Outlook & Summary • Short term macro-economic back drop will impact commissioner and advertising budgets • Advertising: outlook Jan – April • TAR expected to be slightly down • Expectations are for national linear to be down around 5%, regional linear to be slightly up, and VOD to be up around 6% •

STV Group — FY2024 Earnings Presentation on 6ix