STV's Glasgow station 'set to break even'

Scottish broadcaster STV has said that it expects its local Glasgow TV station to break even by the end of this year.

The company won several licences to run local stations and currently operates in Glasgow and Edinburgh.

The Glasgow station went on air in May 2014. Edinburgh followed in January. The start-up costs contributed towards a 7% fall in pre-tax profits for STV.

The broadcaster said it expects the Glasgow station to break even by the end of 2015 and Edinburgh by next year.

The local TV scheme is an initiative by the UK government.

STV was the only established broadcaster to be awarded licences. All the stations in the rest of the UK are run by new businesses, and some have struggled.

STV believes its local stations have been a success story, reaching an average of 900,000 viewers every month - more than 30% of consumers within their broadcast area.

It has also secured licences covering Ayr, Aberdeen and Dundee and expects to start broadcasting in these areas by 2017 at the latest.

Viewing figures for individual programmes are no longer available publicly on the industry ratings body BARB's website.

Chief executive Rob Woodward said he would like to see the local stations secure a more prominent channel number on Freeview.

In England local stations are on Channel 8 - but STV's are on Channel 23 because BBC Alba takes up the slot in Scotland.

He suggested the expected closure of BBC3 - on Channel 7 - could make it possible for the company's local stations to move.

Overall STV Group made a pre-tax profit of £7.8m in the first half of the year - compared to £8.4m in the same period last year. The company's debt also fell.

The dividend for shareholders will go up from 2p to 3p.

Mr Woodward said the results were in line with expectations and represented another milestone on the company's route to achieving its strategic ambitions.

He said: "We are continuing to create sustainable growth and increased consumer margins, resulting in a rebalancing of the business through the growth of our profitable non broadcast services.

"Confirmation of the enhanced dividend payment reflects the board's confidence in our ability to deliver against our strategic plans."

STV's main business is the Channel 3 station for Central and Northern Scotland.

Earlier this week UTV Media in Northern Ireland said it was in talks to sell its TV station.

ITVplc - which owns all the Channel 3 stations based in England and Wales - is reported to be the likely buyer.

If this happens, STV would be the last Channel 3 station which was not owned by ITVplc.

Asked if this would affect STV or if the board might be tempted to sell the station, Mr Woodward said the company's focus remained on Scotland.