22 Sep 2009 15:40
STV response to ITV statement
STV Group plc notes ITV plc's statement made to the press today regarding a potential £15 - £20 million net legal claim against STV.
STV and ITV have been in discussions for many months on numerous matters, of which this is just one. STV has not yet been served with any claim and is disappointed that ITV has acted in this pre-emptive manner. STV will vigorously defend its position and in particular its rights as the licence holder to control its schedule and opt-out of programming in accordance with the Devolution Contract and the relevant Networking Arrangements.
This is but one of a number of issues between STV and ITV, one of which is a claim against ITV relating to revenues which STV should have received under its Advertising Sales Agreement. Since early 2008 ITV has prevented STV's independent auditor, Deloitte, from carrying out a full review of all revenue related contracts which STV has the right to do. However, on the 5% of revenues which Deloitte has been able to review, a potential shortfall of approximately £2 million (covering only 30 months of a six year period) was identified. STV will be pursuing this and further claims.
ENDS
Stvg (STVG)
ITV (ITV)