SMG is changing its name to STV Group to highlight its renewed focus on Scottish television, following the disposal of Virgin Radio and outdoor advertising business Primesight.

The company is taking as its overall corporate identity the brand name of its TV subsidiary STV, which encompasses the central and north of Scotland ITV franchises - formerly STV and Grampian - and SMG's production business.

Today's move by the SMG chief executive, Rob Woodward, in some ways marks a return to the company's roots.

SMG grew out of the old STV central Scotland franchise in the late 1990s, buying the Grampian ITV franchise and other media assets, including Virgin Radio, most of which have now been sold off.

"Our core TV business is outperforming and I am confident that the strategy we are executing in regional advertising, content and digital media will deliver significant growth.

"The new name we propose, STV Group, reflects the company's focus and uniqueness in the Scottish media market," Woodward said.

The SMG board also indicated that trading remained in line with expectations for 2008 and disclosed that the company expected a cash benefit of ￡10m from 2008 to 2011 as a result of tax planning.

SMG said the STV brand reach was strong in Scotland, with 4 million watching its output every week. The company reported a 26% share for its premier news programmes, Scotland Today and North Tonight.

The company's ventures division has recently signed a major two year contract with Setanta Sports and is planning to relaunch the stv.tv website later this summer, with the same online content rights as ITV.com.

This will enable the relaunched stv.tv site to offer video simulcasts, catchup and archive services of ITV shows including Coronation Street and Emmerdale.

Other video content available to watch on the site will include programmes from STV's own library, which stretches back more than 50 years, including Taggart.

The new look stv.tv site, developed in partnership with online video platform company Brightcove, will offer news, sport, entertainment and drama.

Alistair Brown, the STV head of new media, said: "STV has already successfully delivered high quality and robust streaming of large-scale public and sporting events in Scotland and through this new video site we aim to develop this popular offering further, making our content available in as open and user-friendly a way as possible to as wide an audience as possible."

SMG has upgraded its regional transaction-based revenues from ￡2m to ￡3m for 2008 and from ￡5.5m to ￡7m for 2010, but downgraded its online display advertising from ￡1m to ￡0.6m for 2008 and from ￡2m to ￡1.5m in 2010.

The company claims its content business is one of the top 10 UK independent producers and plans to be in the top five by 2010.

SMG is now aiming for 70 hours of content this year, rather than its previous target of 60, and more than 130 hours by 2010.

The company is hosting a visit to its headquarters in Glasgow for investors and analysts today to provide an update on the core broadcasting business, STV.

Brown is to use the event to outline the company's three year digital strategy, including plans for the relaunch of stv.tv along similar lines to ITV.com later this summer.

The analysts' event will also include an update on key performance indicators for the broadcasting, ventures and content divisions of STV.

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