STV hails 'excellent start' for hyperlocal network

Scottish broadcaster STV says its move into hyperlocal publishing has had an "excellent start" and the company has drawn up a new set of digital targets after smashing most of its 2010 goals.

The group said today that it had "firmly secured" its position as a digital media company and that its diversification online had been "highly successful".

Its hyperlocal initiative, STV Local, launched in September last year, building up a network of sites available online and on mobile devices that allow for geo-targeted advertising.

So far, 19 sites have launched in local authority areas covering a third of the Scottish population, including cities such as Aberdeen and Edinburgh.

Announcing its full-year results this morning, STV said it was on track to launch more sites in the rest of Scotland over the next 18 months.

It has upped its digital targets for this year and next, following what it said had been an "exceptional performance" in 2010.

STV had aimed for 1.7 million average monthly unique users across its sites last year - and it claimed to have received 2.2 million. It has now set a goal of 2.5 million in 2011 and three million in 2012.

At two million, total video streams in an average month were double STV's initial target. The target has now been set at 2.7 million this year and 3.5 million for 2012.

Digital revenues grew by 50 per cent year on year to £4.2m. This was £1m short of expectations but the company said it still hoped to meet its 2011 target of £7.3m and has set a new, higher goal of £10.5m for 2012.

Chief executive Rob Woodward said in the earnings release: "We have achieved growth and firmly secured our position as Scotland's digital media company. We continue to deliver against our targets and STV is generating sustainable growth across all areas of business.

"Our latest launch into hyper-local media has got off to an excellent start and is a further example of extending STV's reach through the execution of innovative consumer services."

Total group revenue was up slightly year on year, at £111.7m. Group operating profit climbed by 57 per cent on a like-for-like basis, from £9.2m to £14.4m.

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