Scotland's ITV licensee, STV has posted a 55% dip in its pre-tax profits in 2009. This is fallout of advertising slump the company has been facing, which caused a 13% drop in its broadcasting revenues. It has explained that the sale of Virgin Radio is another major cause of the reduction in revenues.

The pre-tax profit amount dropped from £12.3m in 2008 to £5.5m in 2009.

The year on year revenues fell by 24%.

"The last year has seen the deepest advertising recession ever experienced by the group. The levels of decline in airtime sales in particular, were so severe that despite unprecedented cost reduction measures, profits declined", said the company in a statement.

STV's broadcasting revenues suffered a fall of 13%, with a 10% and 12% dip in national TV ad revenue and Scottish market, respectively.

Although the company intends to devolve the Pearl & Dean cinema operation, which saw a 10% fall in revenues, yet, it forecasted a 12% rise in it in the first quarter of 2010.

"STV has delivered a strong set of results, particularly in light of the extremely challenging market conditions in 2009, including the demise of Setanta and the delay in ITV's recommission of Taggart", said Richard Findlay, the Chairman of STV Group.