STV Group to reinstate dividend, slashes debt

21st Aug 2013 08:24

Media company STV Group posted improved half year earnings and said will reinstate dividend payments with a planned 1.5p per share for 2013, to be confirmed in early 2014.The Scottish digital media business, which produces well known British game show Catchphrase for ITV1, said pre-tax profit rose 5% to £6.7m for the six months ended June 30th 2013. Operating profit was in line with expectations at £8.2m, up 1% while revenue increased 8% during the period to £51.2m.Chief Executive Officer Rob Woodward said: "We have delivered another strong financial performance with a further significant reduction in net debt. We are pleased to announce our intention to return to dividend for the 2013 full year." Digital revenue increased by 19% and STV Productions' revenues grew 84%.Net debt was reduced 22% to £43.4m while margin performance across all areas of activity remains strong, it said.STV added that continued progress was being made towards achieving KPIs and 2015 strategic aims with productions and digital contribution improving.Share of STV rose 4.31% to 181.50p at 08:45 in London. CJ