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22 Sep 2009 15:40
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STV response to ITV statementΒ
STV Group plc notes ITV plc's statementΒ made to the press today regarding a potential Β£15 - Β£20 million net legal claimΒ against STV.
STV and ITV have been in discussions for many months onΒ numerous matters, of which this is just one.Β STVΒ has notΒ yet been served with any claim andΒ is disappointed that ITV has acted in thisΒ pre-emptiveΒ manner.Β STV will vigorously defend its position and in particular its rights as the licence holder to control its schedule and opt-out of programming in accordance with the Devolution Contract and the relevant Networking Arrangements.
This is but one of a number of issues between STVΒ and ITV, one of which is a claim against ITV relating to revenues which STV should have received under its Advertising Sales Agreement. Since early 2008 ITV has prevented STV's independent auditor, Deloitte, from carrying out a full review of all revenue related contracts which STV has the right to do. However, on the 5% of revenues which DeloitteΒ has beenΒ able toΒ review, aΒ potential shortfall of approximately Β£2 million (covering only 30 months of a six year period) was identified. STV will be pursuing this and further claims.
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ENDS
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