A Scottish family affair
We expect a return to revenue growth in FY16. Investment in Production 21 December 2015 should start to deliver and in Consumer Stv Group (L:STVG) is finding an increasing number of ways to leverage its strong brand. The target of 10% CAGR in EPS to FY17 looks achievable and forecasts may benefit from changes in regulation. On a c 40% P/E discount to peers, the shares look good value.
Creating a family of Scottish media services
STV has developed a family of services that enable it to operate at a national, regional and city level;; STV Player has a reach and engagement similar to that of the core TV channel and, together with the city-based initiatives, supports STV’s strategy of broadening its addressable market and earnings base – today’s announcement regarding the planned launch of an enhanced digital news service in February 2016 is a further step in this direction.
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