The outgoing chief executive of STV has declared the Glasgow media company is in “good shape” as he prepares to step down after six years in charge.

Simon Pitts, who will be succeeded by ITV veteran Rufus Radcliffe on November 1, hailed STV’s “brilliant team” and progress in diversifying beyond traditional broadcasting during his tenure, as the company reported profits and revenue had increased “materially” in the first half.

STV made a pre-tax profit of £7.1 million for the six months to June 30, up from £3.3m at the same stage last year, as revenue rose by 20% to £90.4m.

The company reported growth in total advertising revenue and at productions arm STV Studios, while there was further expansion of streaming business STV Player.

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Mr Pitts told The Herald: “We are really pleased with how things have progressed across the business, obviously including [STV] Studios, in the last few years. And as I reflect on the last few years, I think I am leaving STV in a good shape and a stronger business creatively and commercially but also culturally. We have managed to transform STV over the last few years from a broadcast business into one that is really led by content and digital streaming.

“We are much more balanced now in terms of revenue and profit; three-quarters of our total profit last year came from those new high-growth areas and that has been important, because we like other businesses have had to weather the challenging economic backdrop that we have all experienced, and particularly the challenges to the broadcast advertising model. And in that broadcast business we have overtaken BBC1 to become the most-watched peak time TV channel in Scotland; we have retained that position now for seven years in a row.

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“We have got a growth fund that has attracted over 400 new Scottish advertisers to TV for the first time, and we have built STV Studios into one of the UK’s leading production groups. It is now making world-class shows for some of the biggest networks and global streamers. There is no reason why a Glasgow-based production company can’t be making the biggest shows for the biggest players around the world. It is not how big you are, it is how good your creative talent is, and we have some of the best creative talent in the business making shows right here in Scotland.”

STV reported that total advertising revenue climbed by 13% in the first half to £51.9m, boosted by Euro 2024. The opening match between Germany and Scotland helping STV attract a peak audience of 1.38 million viewers.

The first-half results also reflected the continuing growth of STV Studios, which reported its “strongest-ever forward order book” with £100m of commissions, despite a “softening” backdrop. In a “tough commissioning market” over the last 18 months, STV Studios increased revenue by 38% in the first half to £37.5m and is expected to grow profits and revenue for the full year, versus 2023.

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“That is because of our resilience… and that comes from having dozens of returning series now in our portfolio," Mr Pitts said. "We have secured 36 new commissions in 2024 so far, [including] returning shows like Bridge of Lies, Yorkshire Auction House, Criminal Record. We have seen new format commissions in half-one like the Game of Wool for Channel 4 from Glasgow-based [production company] Hello Halo.

“We are hoping that as the advertising market starts to recover, and [with] the US writers’ strike now behind us, that those factors will lead to a more positive knock-on for the commissioning market.”

Yesterday, STV announced it had increased its investment to take majority control (51%) of Hello Halo, which specialises in factual entertainment, children’s and natural history programmes, in a deal that will be “earnings enhancing for STV from day one”. This followed a deal earlier this year to increase its stake in Two Cities, a Northern Irish drama company.

Away from productions, STV reported strong audience numbers for its broadcast business, supported by hit dramas such as Mr Bates vs The Post Office, and further growth for its digital streaming operation, STV Player. Online streams rose by 4% to 73.1 million in the first half.

Mr Pitts said STV has had an “excellent start” to the year, and declared the company was on track to meet “stretching targets” for profit growth out to 2026, which it set out earlier this year.

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STV warned, however, that revenue growth in quarter three would be in single digits [percent], and would face a tough comparison with the fourth quarter of last year, when the Rugby World Cup took place.

Meanwhile, Mr Pitts backed his successor, Rufus Radcliffe, to build on the momentum at the company. The two previously worked together at ITV.

Mr Pitts, who will take over as chief executive of Global next year, said: “I am delighted he is joining the business. He is an excellent hire with lots of very relevant experience across TV, advertising, marketing, digital and the creative industries. I am sure he will do a great job.”

The STV board proposed an interim dividend of 3.9p per share, in line with last year. Shares ended the day down 3p at 260p.