Updated guidance for STV Studios
20 June 2022
STV Group PLC
Updated guidance for STV Studios
STV Studios to exceed 2023 growth target
· STV Studios and Tod Productions announce major new scripted series for Apple TV+
· Hit Channel 4 drama Screw also recommissioned for second series
· £40-45m of Studios revenue now secured for 2023, in excess of £40m target
· STV Studios now producing 9 returning series, bringing improved revenue visibility
· STV Group plc today announces a major new 8-part returnable drama series for AppleTV+, Criminal Record, starring Peter Capaldi and Cush Jumbo and produced by Tod Productions and STV Studios. This is STV Studios' second commission for one of the global streaming services after major reality show Zodiac Island (working title) which is currently in production for discovery+.
· C4 also recently confirmed the recommission of STV Studios' highly acclaimed prison drama Screw for a second series to be filmed later this year in Glasgow.
· On the back of these significant new series commissions and a strong start to 2022, STV Studios will exceed its stated 3-year target to more than quadruple production revenues to £40m by the end of 2023 compared to the baseline year of 2020 (£8.7m).
· STV Studios, led by Managing Director David Mortimer, has already won 20 programme commissions so far in 2022 and is now producing 9 returning series for a range of TV networks and streamers, up from 4 in 2020 and providing significantly improved revenue visibility.
· Following a record year for STV Studios in 2021 where revenues trebled to £26.6m and the division recorded its first meaningful adjusted operating profit of £1.3m, over £20m of Studios revenue has already been secured for 2022 and £40-45m for 2023. STV Studios' adjusted operating profit is expected to be at least £3m in 2023, more than double the level of 2021.
STV Chief Executive Simon Pitts said:
"These exciting new commissions demonstrate that STV Studios is starting to deliver on its ambition to become a world class producer for the biggest TV networks and streamers and the UK's leading nations and regions production company. We are confirming, 18 months ahead of the target date, that STV Studios will exceed its growth target to quadruple revenues to £40m by the end of 2023.
We are delighted to be making a major new returnable scripted series for Apple, Criminal Record, in partnership with Elaine Collins and Tod Productions, as well as a second series of our hit prison drama Screw, filmed in Glasgow for C4.
We now produce 9 returning series in total across STV Studios, providing significantly improved revenue visibility, allowing the division to scale successfully and profitably, as well as make a material contribution to STV Group's overall objective of delivering 50% of operating profit from outside traditional broadcasting by 2023."
There will be a virtual Capital Markets Event focusing on STV Studios at 2pm on Monday 27 June. If you would like to register interest at this stage, please email angela.wilson@stv.tv , and more information on the event will follow, including joining instructions . Materials presented during this event will subsequently be made available in the Investor Relations section of the STV website.
The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of the UK version of EU Regulation No. 596/2014 as it forms part of UK domestic law as defined in the European Union (Withdrawal) Act 2018 ("UK MAR").
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 653341
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