Richard Sine
Updated on: October 8, 2024 12:07 pm GMT
David Mortimer Promoted at STV Studios, Forecasting Growth
David Mortimer has been elevated from Managing Director to Chief Executive Officer of STV Studios, coinciding with the company’s announcement of promising financial results for the first half of 2024. The company is also expecting strong profitability in the second half of the year, particularly from its successful production slate, including the renewed series Criminal Record for Apple TV+. Mortimer’s promotion follows the recent appointment of Rufus Radcliffe as CEO of STV, who will take over for Simon Pitts, set to depart at the end of October.
STV Group’s Financial Performance
STV Group has reported robust growth in its half-year financial results, marking a 20% increase in turnover to £75.3 million (approximately $98.9 million). The adjusted operating profit also saw a significant increase of one-third, reaching £10.6 million. A closer look at STV Studios reveals a particularly impressive performance, with revenues rising by 38% to £37.5 million.
The company indicates it is well-positioned to meet its long-term goal of doubling STV Studios’ revenue to £140 million by 2026 while maintaining a 10% profit margin. Although the operating profit showed only a slight gain of £0.1 million, STV attributed this to the performance of acquired production companies and heightened activity in drama production. However, they expressed optimism for the second half of 2024, expecting stronger financial results from anticipated seasonal peaks.
Successful Production Slate and Future Endeavors
Mortimer’s leadership appears timely, aligning with a series of commissions and renewals that promise to keep the production pipeline fruitful. Notably, Apple TV+ has renewed Criminal Record, which features Peter Capaldi and has been well-received since its debut. The studio has also secured a debut commission for The Witness from Netflix and received a significant order from the BBC for a four-season run of the Northern Irish police drama Blue Lights.
In addition to these projects, reports indicate that STV Studios is actively developing a new drama for the BBC centering on the tragic Piper Alpha oil rig disaster, which claimed the lives of 167 individuals. The attention to both fictional and factual storytelling underscores the studio’s commitment to delivering diverse content.
Moreover, STV Studios recently expanded its reach with a majority stake acquisition in the factual production company Hello Halo, boosting its ownership from 30% to 51%. This move is expected to enhance STV’s portfolio and production capabilities, aligning with the company’s strategic growth initiatives.
Management Insights and Future Outlook
Simon Pitts reflected on the challenges and successes during his tenure, emphasizing the tangible results stemming from STV’s investment in production. Pitts noted the significant revenue growth experienced by STV Studios in the first half of the year and expressed enthusiasm for the future with a robust order book worth £101 million in secured commissions.
Speaking about Mortimer, Pitts highlighted his extensive experience, stating that he is “delighted” to see the former BBC and NBC executive step into this pivotal role, suggesting that Mortimer’s leadership could steer the company towards greater success both domestically and internationally.
Last year, STV broadened its production capabilities by acquiring Greenbird from Keshet, significantly expanding its lineup from eight to twenty production labels. This step demonstrates STV’s commitment to increasing its competitiveness in the production landscape as it seeks to capture more extensive market share through strategic acquisitions and innovative content creation.
The diverse strategy employed by STV demonstrates its focus not merely on immediate profitability but also on sustainable growth through content diversification and leveraging existing relationships within the industry. As the media landscape continues to evolve, maintaining a strong portfolio backed by effective leadership will be crucial for STV Studios moving forward.
STV Studios is working hard in the busy world of entertainment. Everyone—both the people involved and the viewers—are paying attention to what David Mortimer does in his new job. He has some exciting projects coming up that could really help the studio grow and reach new levels of success.
