STV shares (LON: STVG) grew on Tuesday, despite the broadcaster posting a loss for the first half of the year.
Compared to a £9.1m profit for the same period last year, STV revealed a £4.9m loss for the first six months of 2020.
Revenue fell 19% to £44.7m as national advertising revenue plunged 23% and filming was put on hold over lockdown.
STV chief executive Simon Pitts admitted to the “challenging period”, however, remained positive due to the growth in viewing figures over lockdown.
Daytime viewers surged 48% in the height of lockdown, whilst STV news figures grew 40%.
“While our advertising and production revenues have been significantly impacted by Covid-19, we have been able to mitigate nearly half of the impact thanks to the proactive steps we have taken and our variable cost model. The successful share placing in July has also significantly strengthened the balance sheet and given us the confidence to continue to invest behind our growth strategy,” said Pitts.
“The outlook is much more positive in the second half, with advertising trends improving materially in July and August, and a strong schedule to look forward to on TV and online including the return of a full complement of weekly soap episodes from later this month, new drama like Des starring David Tennant, and entertainment juggernauts like the rescheduled BGT live finals and I’m a Celebrity.”
The group has revealed an interim dividend of 3p per share.
STV shares (LON: STVG) are trading +6.13% at 225.00 (1521GMT).
