SMG, the Scottish TV company, says it will hit its full year targets despite the difficult advertising market. It made the comments as it announced pre-tax profits of £4.2m for the first half of the year.
The group’s core TV business, STV, reported flat revenue year on year at £56m with operating profit up by 26% to £4.9m. It also saw a 14% rise in regional ad revenue over the period.
It says it expects regional TV revenue will be up by 16% year on year in the third quarter of the year but national TV revenue is expected to drop 15% year on year with “low double-digit decline” in October.
The company is rebranding at STV following the sell off of Virgin Radio, outdoor company Primesite, cinema advertising company Pearl & Dean and its newspaper publishing arm over recent years.
SMG Group, including Virgin Radio, Primesight and Pearl & Dean, saw revenue fall to £75.6m over the first half the year compared to £88.9m in the same period last year. Operating profit fell from £6.9m to £5.4m. Pearl & Dean reported a year-on-year loss of £1m over the first half of the year, and Virgin Radio also saw revenue drop by nearly £1m to £11.3m and a drop in operating profit from £2.5m in the first half of 2007 to £1m this year.