STV Group profits slide by almost 50%

STV Group has seen its operating profit plunge by almost 50% in the first six months of the year and will embark on a new wave of cost-cutting. 

Operating profits were £3.3m in comparison to 2024’s £6.5m, while adjusted operating profit fell by 37%. 

Those declines were blamed on a weak advertising market, restructuring costs and a difficult commissioning sector. STV said it will implement additional savings of £3m per annum, with £2.5m to be delivered by the end of 2026.  As part of those measures it will make no further investment in Mighty Productions, and is ending development activity at STV Entertainment as part of cost-cutting plans.  

Gary Chippington, creative director at STV Studios Entertainment, is stepping down from his role but will remain as an exec producer on returning shows including Celebrity Catchphrase and Bridge of Lies. 

At Mighty, STVS will retain its minority stake and the label will continue to operate as normal. 

Despite market turbulence, STV Studios saw revenues rise 13%, helping to offset a 10% decline in advertising revenue, which fell  from £50.7m in the first half of 2024 to £45.6m this year. The 2024 figure included coverage of the Euros. 

In July, STV had issued a profit warning, stating that its full year revenues and operating profits would fall short of market expectations as a result of “further deterioration in the commissioning and advertising markets” with incremental cost savings of £750,000 identified for the full year.  

The reduction in activity at STV Studios Entertainment and Mighty Productions is part of these measures, and there will also be a re-phrasing of non-essential capital expenditure over the next 18 to 24 months.  

Meanwhile, STV Radio is progressing to plan with its licence granted by Ofcom.  

STV Studios revenues rise in H1

STV Studios’ revenues rose from £37.5m in 2024 to £42.2m in the first half of the year, with the production arm securing 30 commissions, including Channel 4’s Army of Shadows from Two Cities.  

Other wins include BBC Scotland documentary series The Troops from STV Studios Factual and Crime Scene Cleaners from Crackit Productions.  

It is expected that most of the adjusted operating profit for STV Studios will be generated in the second half of the year.  

STV chief executive Rufus Radcliffe said that he has “every confidence that STV will navigate the currently difficult trading environment in both our key markets, successfully implement our FastFwd strategy, and deliver sustainable value to our shareholders.  

“We recognise that our cost savings programme impacts colleagues across the business, and we are committed to supporting people through this change. These steps are necessary to strengthen our financial resilience and position STV for long-term growth.”  

The company said STV remains the most popular peak-time channel in Scotland while streamer STV Player achieved its best ever H1 in viewing terms, delivering 37m viewing hours, an increase of 8% year on year.  

STV Group chairman steps down  

Paul Reynolds will step down as chairman and director of the company by the end of 2025, having served in the role since April 2021 and joined the STV group board in February of that year.  

Following a search process, Whiley will join the board in October as non-executive director and chair elect until Reynolds steps down.  

Reynolds said that being chairman of STV had been his “great privilege”. He also noted that “demand for advertising and new shows is currently weak, in line with the UK economy” and said Whiley’s “huge experience will be very helpful in navigating through this tough period, keeping STV strong for the opportunities that the inevitable upturn will bring.” 

Whiley said that much of his career “has been characterised by applying my experience of listed and regulated environments to fresh challenges” and that “the media industry is currently undergoing a period of exceptional change.”