STV tightens costs as ad markets continue to soften

Scottish digital media business STV said tight cost controls offset soft advertising markets as it reported full year results in line with expectations.The group, which holds the ITV licenses for central and northern Scotland, said pre-tax profit rose 12% to £14m for the year ended 31 December 2011 while revenue slipped to £102.0m from £104.8m in 2010.Digital revenues rose 69% to £7.1m during the year in what chairman Richard Findlay said were "a robust set of results for 2011."Its outlook for first quarter for total airtime revenues is down 4% with regional airtime revenues increasing 14% year-on-year in the quarter, partly offsetting an 8% decline in national airtime revenues. "We remain cautious as a result of the uncertain UK macro economic climate."Otherwise STV said the business remains resilient against challenging economic conditions from which "no consumer business is immune.""We are focused on our clear strategy and KPI targets and we continue to improve efficiencies behind the scenes," Findlay said.Chief executive officer Rob Woodward added, "STV has an ambitious plan for growth and our strategy remains clear going forward, with investment in strategic partnerships, helping extend the STV brand in our core Scottish market and beyond."The group, which signed a new three year £70m banking facility last month, said despite the challenging marketplace and a reduction in regional advertising revenues it has exceeded its upgraded broadcasting margin target of 15%.As previously announced STV intends to resume dividend payments with a planned progressive dividend policy.