Sign In
Last checked at 
22 Apr 2009 07:00
ο»Ώ
22 April 2009Β
STV Group plc
Chairman's AGM Statement and IMSΒ
The followingΒ AGMΒ Statement andΒ trading updateΒ will beΒ providedΒ to shareholders by STV's Chairman Richard Findlay at the Company's Annual General Meeting,Β to beΒ held atΒ 10.30amΒ today:Β
"As IΒ statedΒ at our PreliminaryΒ Results eight weeks ago, 2008 saw STV emerge as a transformed business with positive momentum. We delivered a strong performance in our KPIsΒ in 2008Β and theyΒ remain on trackΒ in 2009,Β with theΒ previously highlightedΒ exception of the broadcasting margin,Β which has been impacted by the market downturn.
Since 26 February, we have seen noΒ improvementΒ in the market outlook regarding our broadcasting division. We will therefore intensify ourΒ focus onΒ efficiency improvements andΒ cost reduction activities to effectively manage our cost base and mitigate any shortfalls in thisΒ unprecedented andΒ challenging economicΒ environment.
As part of this effort,Β IΒ canΒ announce today that STV's Leadership TeamΒ will be takingΒ up toΒ a 20%Β voluntaryΒ cut in salary from 1 MayΒ untilΒ the end of 2009Β andΒ willΒ alsoΒ beΒ waiving their right to a performance related bonusΒ in 2009. Rob Woodward, Chief Executive, andΒ George Watt, Chief Financial Officer, will take reductions of 20% and 15% respectively. Other members of the Leadership Team will take reductions of between 10% and 15%. Whilst theseΒ salary and bonusΒ costs haveΒ alreadyΒ been budgeted for, theΒ LeadershipΒ TeamΒ isΒ totallyΒ committed to the business andΒ shareΒ aΒ strongΒ belief in the future ofΒ STVΒ and a confidence that we will deliver our growth targets. WeΒ have identified a range of measures to mitigate the effects of the economic downturnΒ and thisΒ additionalΒ decisionΒ will allow for increased investment in the businessΒ at this time.
The totalΒ television advertisingΒ market is forecast to be down around 20% in April and May, withΒ STV and ITV1Β trading slightly behind the market. The regionalΒ television advertisingΒ market hasΒ continued toΒ be moreΒ volatileΒ than the national market across the first five monthsΒ and is forecast to be down 5% in April and down between 10-15%Β forΒ May.
Under the direction ofΒ Alan Clements, our content teamΒ remainsΒ on track withΒ itsΒ 2009 KPIs.Β Β We continue to invest in our content team, with a healthy number of projects in development. We are currently working with a number of other broadcasters on joint collaborations, and we remain optimistic about announcing future commissions in the near future.
Ventures is theΒ mainΒ growth area of our business and we continue to develop and enhance our online portal. We are seeingΒ earlyΒ success with our classified business, which we launched inΒ February,Β andΒ the businessΒ isΒ tradingΒ in line with pre-launch predictions. We are also seeing continued growth in user numbersΒ and have recently launched a new bingo product,Β www.bingomood.com,Β designed toΒ growΒ trafficΒ and increase margins as well asΒ online advertisingΒ revenue. WeΒ remainΒ on track to meet our targetΒ of 90k visitors per day byΒ the end of 2009.
The cinema advertising market isΒ now forecast to beΒ materially weaker than anticipated andΒ thisΒ is impacting the performance of Pearl & Dean. WeΒ will sellΒ theΒ businessΒ at the earliest opportunity,Β and the loss-making contract weΒ hold with VueΒ willΒ endΒ in 2010.
Also today, I would like to announce that we have appointed a new member to our BoardΒ -Β Michael Jackson, whoΒ willΒ join us as a non-Executive DirectorΒ on 1 May 2009. Mr Jackson has worked at the highest levels in the broadcastingΒ and digital mediaΒ industry in theΒ UKΒ andΒ USAΒ andΒ heΒ will be an excellentΒ appointmentΒ to our Board. A separate more detailed announcement on this appointment has been issuedΒ to the Stock Exchange.
Despite this very challenging economic climate, we remainΒ broadly on track with our KPIs, weΒ have created a culture where cost-savingΒ and entrepreneurial behaviourΒ is in our DNA and have attractedΒ strong leadershipΒ talent to our business. The further cost reductionΒ measures taken by the Leadership Team announced today demonstrate theΒ totalΒ commitmentΒ to shareholder value which characterises the coming together of your new Board and Leadership Team. We are committed to delivering for our shareholders and for our viewers,Β and to maintaining STV's position asΒ Scotland's Broadcaster of Choice."
Enquiries:
STV Group plc
George Watt, Chief Financial Officer
Kirstin Stevenson, PR Manager 0141 300 3670
BrunswickΒ Group
Simon SporborgΒ 020 7404 5959
Follow the stocks
