CASH-CRISIS STV'S 84% PROFITS SLUMP; Under-fire channel victims of ad slump.

Byline: Paul English

STV took another pounding yesterday as profits dropped by 84 per cent.

Bosses - already under fire from viewers after dropping hit ITV shows to save cash - blamed a huge drop in advertising revenue.

They posted pre-tax profits of pounds 700,000 for the six months to June 30, down from pounds 4.5million the previous year.

Broadcasting operating profits dropped by a quarter to pounds 3.9million, driven by a pounds 10million decline in ad revenue because of the recession.

It's the latest blow for the hard-up station, who are opting out of showing big ITV network dramas.

STV must pay ITV to screen programmes such as Lewis, The Bill, Midsomer Murders and recent comedy-drama Monday Monday.

Earlier this week, it was revealed thata new series of The Fixer, starring Peter Mullan and Andrew Buchan, and a big-budget adaptation of classic novel Wuthering Heights are among several new ITV shows which won't be shown in Scotland.

Some viewers north of the Border have been turning to the itv.com website or viewing ITV London on digital TV to see the programmes.

But STV chief executive Rob Woodward denied the figures would impact on the standard of shows made by the channel.

He said: "These figures are in line with what everyone was expecting.

"It's not as if everyone was surprised because we're in the middle of the most serious economic downturn in history.

"The figures reflect the downturn in TV advertising.

"We put together a plan in 2007 that was about putting STV back on its feet. We said we'd put content back at the heart of the company, give it a sense of pride and passion and refocus it around Scotland.

"People criticised STV when we were no more than ITV1 and now we are on our way to becoming something other than that.

"You can't please everybody. We're going full steam ahead."

STV said they had received an order from ITV for edited versions of four episodes of Rebus, starring Ken Stott, for the autumn schedule.

They said they were still in talks with ITV over the commissioning of crime series Taggart but added they remained "confident" about its future.

CAPTION(S):

NO SHOCK: Woodward NO SHOW: Andrew Buchan in The Fixer