Revenue & Profit Up; Rumpus Media Acquired
- STV has increased its majority stake in Rumpus Media,the indie producer behind Joe Lycett’s Got Your Back.
- Full-year results revealed that STV Studios now holds a 99% stake in Rumpus Media.
- STV initially acquired 40% of Rumpus Media as part of its purchase of Greenbird from Keshet in July 2023 for £21.4M ($27.7M).
STV Increases Stake in Rumpus Media,Reports Profit and Revenue Growth
Table of Contents
- STV Increases Stake in Rumpus Media,Reports Profit and Revenue Growth
- STV’s Strategic Moves: Q&A on Increased Stakes, Profit Growth, and Future Plans
STV has increased its majority stake in Rumpus Media,the indie producer behind Joe Lycett’s Got Your Back. The Scottish media company is also reaping the benefits of its recent deal with two Cities, the production house known for Patrick Melrose. These strategic moves have contributed to a notable boost in both profit and revenue for STV.
STV Studios Now Owns 99% of Rumpus Media
Full-year results revealed that STV Studios now holds a 99% stake in Rumpus Media. This acquisition occurred less than a year after the departure of Rumpus founders Emily Hudd and Iain Wimbush. Thay had successfully built the indie into a prominent unscripted producer over a decade. Josephine Brassey has since taken their place.Rumpus Media’s portfolio includes popular shows like Joe Lycett’s Got Your Back and The Misadventures of Romesh Ranganathan.
STV initially acquired 40% of Rumpus Media as part of its purchase of Greenbird from Keshet in July 2023 for £21.4M ($27.7M). The stake increased to 99% approximately eight months later due to a “bad leaver” provision in the share purchase agreement. According to the results, the additional 59% of Rumpus transferred to STV for a “nominal consideration.”
Strategic Acquisitions Drive Growth
During the latter half of the previous year, STV also acquired a 51% majority stake in another unscripted producer, Hello Halo. Earlier in 2024, STV increased its stake in Two Cities, the producer of Patrick Melrose, to 51%. Two Cities, responsible for the hit BBC drama Blue Lights – already commissioned for a third and fourth season – and the upcoming Sky drama amadeus from Joe barton, contributed £31.5M to STV’s revenue,representing about one-sixth of the total turnover.
despite challenging economic conditions, STV’s strategic acquisitions have proven beneficial. The company,which operates a channels business,a digital division,and the STV Studios production arm,reported a 12% increase in revenue,reaching £188M. Adjusted operating profit also saw a slight increase to £20.6M. The company noted,”Our strategy of acquiring stakes in high potential production companies continues to deliver for the business.”
STV Studios Performance
The STV Studios production arm, led by David Mortimer, experienced significant growth.Turnover increased by 26% to £84.1M, and adjusted operating profit rose by 18% to £6.1M, driven by securing more than 50 commissions. Key projects from the year included a second season of the Apple TV+ series Criminal Record, starring peter Capaldi, and a first greenlight from Netflix for a drama about the death of Rachel Nickell titled the Witness.
At the end of last month, STV Studios’ order book stood at £76M.This figure was lower compared to earlier in the year due to the delivery of scripted programs. The results indicated, “The rate of commission wins is slower in the current market than previously, but our labels continue to win and have momentum to carry forward.”
New Leadership and Future Strategy
Last year also marked the arrival of a new CEO, Rufus radcliffe, formerly of ITV. He is expected to unveil a refreshed strategy in the coming weeks, outlining the company’s direction up to 2030.
Radcliffe commented, “I’ve been with STV for 4 months and it’s clear that the foundations of the business are strong.” He added, “2024 was a good year for STV. We delivered a strong performance against a challenging economic backdrop, with results in line with expectations. We are controlling those elements we can, in line with our strategy, and are very much on track to ensure that STV is in the best possible shape when the market recovers.”
Radcliffe further stated that the strategy refresh will “build on the strengths of our existing strategy and take it to the next stage of development and growth.”
STV’s Strategic Moves: Q&A on Increased Stakes, Profit Growth, and Future Plans
This article provides a comprehensive overview of STV’s recent strategic decisions, focusing on their increased stake in Rumpus Media, overall financial performance, and future direction. Here are some frequently asked questions and detailed answers about STV’s current position and plans.
STV and Rumpus Media
Why did STV increase its stake in Rumpus Media?
STV increased its stake in Rumpus Media to 99% due to a “bad leaver” provision in teh share purchase agreement following the departure of Rumpus Media’s founders. This allowed STV to acquire an additional 59% of Rumpus for a nominal consideration.
What is Rumpus Media known for?
Rumpus Media is known for producing popular unscripted shows such as Joe Lycett’s Got Your Back and The Misadventures of Romesh Ranganathan.
How did STV initially acquire a stake in Rumpus media?
STV initially acquired a 40% stake in Rumpus Media as part of its purchase of greenbird from Keshet in July 2023 for £21.4M ($27.7M). STV’s initial acquisition of Greenbird gave them a considerable foothold in the unscripted sector through Rumpus.
Who are the key people involved in Rumpus Media?
Former Founders: Emily Hudd and Iain Wimbush who built the company for a decade.
Current leadership: Josephine Brassey succeeded the founders.
STV’s Financial Performance and Strategic Acquisitions
What contributed to STV’s revenue and profit growth?
STV’s revenue and profit growth were primarily driven by:
Strategic Acquisitions: Increased stakes in production companies like Rumpus Media, Two Cities, and Hello Halo.
Strong Performance of STV studios: The production arm secured over 50 commissions, leading to increased turnover and profit.
Triumphant Shows: The success of shows like Blue Lights (produced by Two Cities) significantly contributed to revenue.
How much did Two Cities contribute to STV’s revenue?
Two Cities contributed £31.5M to STV’s revenue, representing approximately one-sixth of the total turnover.
What was STV’s overall revenue and profit for the past year?
Revenue: Increased by 12% to £188M.
Adjusted Operating Profit: Rose slightly to £20.6M.
What are STV’s key buisness divisions?
STV operates through three main divisions:
Channels business
digital division
STV Studios production arm
What is driving STV’s strategy of acquiring stakes in production companies?
STV’s strategy is intended to leverage the creative and production capabilities of these companies. Also to provide benefits for STV’s overall business performance, by expanding its content portfolio and increasing its revenue streams.
STV Studios Performance and Key Projects
How did STV Studios perform?
STV Studios experienced substantial growth.Turnover increased by 26% to £84.1M, and the adjusted operating profit rose by 18% to £6.1M. This growth was driven by securing more than 50 commissions.
What are some key projects from STV Studios?
Key projects included:
A second season of the Apple TV+ series Criminal Record, starring Peter Capaldi.
A first greenlight from Netflix for a drama about the death of Rachel Nickell, titled The Witness.
What was the state of STV Studios’ order book?
At the end of last month, STV Studios’ order book stood at £76M. This was lower compared to earlier in the year due to the delivery of scripted programs.
New Leadership and Future strategy
Who is the new CEO of STV?
Rufus Radcliffe, formerly of ITV, is the new CEO of STV.
What are Rufus Radcliffe’s initial impressions of STV?
Radcliffe believes the foundations of the business are strong. He notes that STV delivered a strong performance in a challenging economic environment.
What is the focus of STV’s refreshed strategy?
The refreshed strategy will build on the strengths of the existing strategy. The purpose is to take it to the next stage of development and growth, outlining the company’s direction up to 2030.
When will the refreshed strategy be unveiled?
The refreshed strategy is expected to be unveiled in the coming weeks.
Summary of Key Information
| Area | Details |
|—————–|—————————————————————|
| Rumpus Media | STV owns 99%; Producers of Joe Lycett’s Got Your Back |
| Revenue Increase| 12% increase to £188M |
| Profit Increase | Adjusted operating profit rose to £20.6M |
| STV Studios | Turnover up 26% to £84.1M; Profit up 18% to £6.1M |
| Key Productions | Criminal Record, The Witness, Blue lights |
| New CEO | Rufus Radcliffe (formerly of ITV) |
This Q&A provides a detailed look into STV’s strategic initiatives, financial performance, and future plans, offering valuable insights into the company’s operations and direction.