0700, 31 January 2024
STV Studios becomes majority
shareholder in high-end scripted production company, Two Cities
Television
·
Increased equity stake from
25% to 51% accelerates STV Studios' growth plan and is materially
earnings enhancing
·
High-end drama producer has
secured revenues of £55m over next 3 years across multiple
series
·
Investment will help
underpin Two Cities' growth and strengthen STV Studios' position as
leading Nations & Regions producer
STV Studios is pleased to announce it has
increased its 25% equity stake in the high-end drama production
company, Two Cities Television ("Two Cities"), to a majority
holding of 51%.
STV acquired a minority stake in Two Cities in
January 2020, with an option to increase its initial stake to a
majority position upon Two Cities becoming profitable. Following
the initial investment, the Belfast-based company has made
significant progress, producing two series of the critically
acclaimed police drama Blue
Lights for BBC One, with the second series due to air in
2024. This follows previous success with BAFTA award-winning show
Patrick Melrose starring
Benedict Cumberbatch for Sky and Showtime.
Currently, Two Cities has additional high-end
drama series secured which will deliver forecast revenue of £55m
over the next three years (2024 to 2026). The acquisition will
support STV Studios on its journey to becoming a 10% operating
margin business, but at this stage in the year delivery schedules
for commissioned shows have not been finalised and so the phasing
of profit across the three years is not yet agreed. Additionally,
there is a strong development pipeline.
Founded in 2016, Two Cities is led by Michael
Jackson, formerly Controller of BBC One and BBC Two, CEO of Channel
4, President of Programming at USA Entertainment and Chairman of
Universal Television, and Creative Director Stephen Wright,
formerly Head of Drama for BBC Northern Ireland where he
commissioned Line of Duty
and The Fall.
STV Studios is one of
the UK's leading producers of scripted and unscripted content and
Scotland's largest production group, with stakes in multiple
production companies across the UK. It acquired
Greenbird Media's expansive network of independent production
companies in July 2023, significantly increasing the number of
creative labels in the STV Studios family to 24 and its portfolio
of returning series to nearly 40. STV Studios
is responsible for a wide range of scripted and unscripted series
such as AppleTV+ drama Criminal
Record; prison drama Screw; Bridge of Lies; Celebrity Catchphrase;
The Hit List; A&E After Dark; LEGO Masters; Antiques Road Trip;
and The Travelling Auctioneers.
Stephen Wright
and Michael Jackson of Two Cities Television
said: "The STV team have
been incredible partners. The company is beginning to find its feet
and we are thankful for all the support from STV Studios in getting
Two Cities up and running. Their continued investment and
partnership will allow us to develop and grow."
Simon Pitts,
Chief Executive of STV Group plc, said:
"Michael and Stephen have
delivered significant creative and commercial success on the back
of the standout performance of Blue Lights and there is so much
more to come. STV's consolidation of Two Cities is clear evidence
of the ongoing success of our Studios strategy of taking minority
stakes in high potential production companies. We're very proud to
be in business with Two Cities and look forward to our continued
partnership."
David
Mortimer, MD of STV Studios, added:
"Two Cities remains a
natural partner for STV Studios, producing high-quality drama
across the UK and beyond. Their brilliant police series, Blue
Lights, truly put them on the map, launching to rave reviews and
very strong ratings in 2023. Two Cities has more work lined
up for 2024 and beyond, a strong development pipeline and many
exciting projects to come. I've really enjoyed working with Michael
and Stephen over the last four years, they are two of the very best
in the business. I'm sure exciting times lie
ahead!"
STV Group plc
Media Contact: Kirstin Stevenson, Head of
Communications | 07803970106 | kirstin.stevenson@stv.tv
About
Two Cities
Two Cities Television was founded
with the ambition to produce both returning, event and prestige
dramas that are powerful, complex, and have intriguing stories at
their heart. With offices in London and Belfast, and a base
in New York, Two Cities prides itself on developing a diverse slate
of projects with international, UK, and Irish broadcasters,
streamers, and distributors. Two Cities is creatively led by Joint
CEO, Michael Jackson and Joint CEO and Creative Director, Stephen
Wright. The company is proud to be part of the STV Studios
group of production labels.
About
STV Studios
STV Studios is one of the UK's
leading producers of scripted and unscripted content and Scotland's
biggest production group. Led by David Mortimer, the group has an
impressive track record of success across drama, entertainment and
factual, working with the world's biggest broadcasters and
streamers including Apple TV+, BBC, Channel 4, Channel 5, ITV, Sky
and Warner Bros. Discovery. STV Studios was
named Production Group of the Year at the prestigious Edinburgh TV
Awards in 2023.
In July 2023, STV acquired Greenbird Media's
expansive network of independent production companies,
significantly increasing the number of creative labels in the STV
Studios family.
STV Studios' in-house drama, entertainment and
factual teams have produced hundreds of hours of
critically-acclaimed, conversation-starting television, including
Apple TV+ thriller Criminal
Record (a co-production with Tod Productions); BAFTA and
International Emmy award-winning TV film Elizabeth Is Missing (BBC One);
nail-biting quiz format Bridge of
Lies for the BBC in the UK and sold internationally; iconic
Saturday night gameshow Catchphrase (ITV); and a number of
much-loved auction-based series including The Yorkshire Auction House for Warner
Bros. Discovery and long-running BBC daytime hit, Antiques Road Trip.
Recent successes for labels within the STV
Studios family include Two Cities TV's gripping police drama
Blue Lights for BBC One;
headline-making Channel 4 comedy chat show Late Night Lycett (Rumpus Media); and
hit international format LEGO
Masters (Tuesday's Child), which has aired in 20 territories
across the globe.
A number of exciting new productions are coming
soon, including Tuesday's Child entertainment event The Fortune Hotel for ITV and Primal
Media reality series Alan Must
Win for E4, which is also being adapted for US audiences as
part of a development deal with NBCUniversal.
www.stvstudios.com
