Trading Update

In brief · summary, not quotable

STV Group plc reported a Total Advertising Revenue (TAR) decline of 4% in Q1, exceeding guidance, with Q2 TAR expected to rise approximately 10% due to the FIFA Men's World Cup. The company anticipates an adjusted operating loss of around £3 million for STV Studios in H1, consistent with expectations given subdued commissioning markets, though it secured its first international streamer commission for Disney's Hulu and a partnership with Ferryman Films. A cost reduction plan is on track to deliver £8 million in annualised savings by the end of FY26, and Ofcom approval for PSM licence changes ensures a sustainable news service. H1 TAR is projected to increase by approximately 4%, with the World Cup offsetting underlying market softness, though the uncertain geopolitical backdrop suggests continued market dynamics into H2.

Full announcement

Select text to share a quote on X · sign in to keep highlights & notes in your STVG notes

Highlights

Q1 Total Advertising Revenue (TAR) better than guided at -4% (guidance -5%), driven by digital advertising
Q2 TAR expected to be up c.10%, benefiting from strong advertiser demand around FIFA Men's World Cup
H1 adjusted operating loss in STV Studios of around £3m, in line with management expectations, and impacted by continuing subdued commissioning markets
First unscripted commission for an international streamer - The Mob (Primal Media) for Disney's Hulu
Exclusive partnership with Kevin McKidd's Ferryman Films to strengthen our scripted pipeline
Cost reduction plan on track to deliver annualised run rate savings of £8m by end FY26
Ofcom approval secured for changes to both STV's Public Service Media (PSM) licences securing the future delivery of a financially sustainable news service

Outlook

H1 TAR expected to be up c.4% with World Cup effect more than offsetting softness in underlying advertising market
Expectations are for current underlying advertising and commissioning market dynamics to continue into H2 given uncertain geopolitical backdrop
Key commissioning decisions expected in Q3 that may influence production revenue and margin recognition across FY26 and FY27
STV Radio launched as planned in January, advertisers and listeners responding well, and first RAJAR figures expected in August

Rufus Radcliffe, STV Chief Executive, said:

"We are making progress with performance in H1 in line with our expectations, despite continued pressure in the advertising and commissioning markets.

"We are seeing encouraging early signs from the diversification of our advertising proposition through pause ads, STV Adapt - our AI data-driven addressable ad platform - and new growth venture, STV Radio. The STV Studios team continues to deliver in a slow market, with recent commissions including a new reality format for Disney's Hulu and a returnable drama for RTE.

"Whilst we expect a boost in advertising revenue from the FIFA World Cup, we remain cautious on the outlook for the second half of the year given the underlying softness in the advertising and commissioning markets driven by the continuing uncertain geopolitical situation. Against that backdrop, we continue to focus on those elements we can control and are taking the right steps to position the business strongly for the medium term."

Ends.

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.