STV revenues slide 27% in weak TV commissioning market
“Our first-half performance was in line with our expectations and previous guidance” – Rufus Radcliffe, CEO
Broadcaster STV Group has seen its revenues slide by more than a quarter amid weakness in the programme commissioning market.
Chief executive Rufus Radcliffe said a portfolio review was underway at the group’s studios business as he unveiled a 27 per cent fall in overall revenues to £66.1 million for the six months to the end of June, down from some £90m a year earlier.
Total advertising revenue of £48.1m was up 5 per cent year on year and slightly ahead of guidance, thanks to a boost from the football World Cup. In contrast, studios revenue of £15.5m was down sharply from £42.2m in the first half of 2025.
Adjusted operating profit fell 12 per cent to £5.9m while the group posted a statutory operating loss of £20.5m, compared with a profit of £3.3m a year earlier, following impairment charges at the studios division amounting to £25.4m.
Glasgow-headquartered STV said the impairment reflected short to medium-term uncertainty in pace and scale of commissions following delays in decision-making and “evolving market conditions”.
The board is not proposing an interim shareholder dividend but will continue to review the position and provide a further update when the firm releases its full-year results. Shares were down about 7 per cent in Tuesday morning trading.
Radcliffe described market conditions as “challenging for all UK media owners” but noted that the group’s first-half performance had been in line with its expectations and previous guidance.
He said: “The boost to advertising revenue and viewing from the FIFA World Cup, combined with disciplined cost management, helped offset reduced studios profitability which reflects the timing of delivery of scripted programming and continued weakness in the commissioning market.
“These markets are difficult and in terms of the guidance we are giving today we are not assuming a recovery. Commissioning decisions are taking longer. However, we are very focused on improving studios’ performance.
“We have a really strong set of labels and creative leaders but we’ve got to make sure our portfolio is configured for the market,” he added.
The group still won 24 commissions in the year to date, including its first commission for Disney-owned Hulu by Primal Media. It also announced recommissions for returning series including Celebrity Catchphrase, Bridge of Lies, Antiques Road Trip and The Travelling Auctioneers.
STV said it was on track to deliver annualised cost savings of £8m as planned. It has completed a previously announced restructuring that resulted in some 60 roles going across the business.
The group landed in hot water last year over its plans to shake up its news output - cancelling a separate news service for the north of Scotland and cutting the amount of local news it shows. The plans were condemned by the Scottish government, the leaders of the main parties at Holyrood, trade unions and local politicians.
Radcliffe added: “Our audio venture continued its strong start with STV Radio entering Scotland’s top ten most-listened-to commercial stations after just six months on air, well ahead of our expectations. In Q4, we will launch our AI-powered advertising service, ADapt, offering businesses an unrivalled cross-platform audience reach across broadcast, digital and audio in Scotland.”
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