STV Group issues profit warning amid deteriorating markets
By Josh White
Date: Monday 28 Jul 2025
(Sharecast News) - STV Group warned on Monday that its full-year revenue and adjusted operating profit would fall materially below market expectations, as deteriorating conditions in both the advertising and commissioning markets weigh on its performance.
The London-listed broadcaster and production company said group revenue for 2025 was now expected to be between £165m and £180m, with an adjusted operating margin of around 7%.
It said the downgrade included a £10m impact from revised guidance for STV Studios.
The company had identified additional annualised cost savings of £0.75m, bringing its full-year target to £2.5m.
Core net debt stood at £30m at the end of June, slightly up from £29m at the end of December, while production financing was reduced to £5m, reflecting the delivery of completed programmes.
Total advertising revenue in the first half was in line with guidance, up 3% year-on-year, but the outlook for the third quarter has worsened, with a decline of around 8% now expected.
July revenue was particularly weak, down around 20% due to the absence of a comparable boost from the men's Euro 2024 tournament, though August and September were expected to be broadly flat.
For the audience division as a whole, STV said it now expected full-year revenue of £90m to £95m and an adjusted operating margin of 13% to 15%.
In production, STV Studios said it had been hit by a marked deterioration in commissioning activity since late in the first half, with some unscripted projects delayed or not green-lit.
Despite securing 13 unscripted commissions in the second quarter, revised delivery schedules and softer volumes were now expected to push 2025 revenue for the division to between £75m and £85m, with margins around 4%.
The forward order book had fallen to £54m from £66m at the end of April.
"The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate," said CEO Rufus Radcliffe.
"He added that while commissioning weakness had hit studios' delivery schedules, the business had continued to secure high-profile titles, including Amadeus for Sky and a third series of Blue Lights for BBC One.
"We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business," Radcliffe said.
"There continues to be strong long-term growth potential within our business despite the short-term challenges."
STV said it would provide a further update with its interim results in September.
At 0914 BST, shares in STV Group were down 23.94% at 145.27p.
Reporting by Josh White for Sharecast.com.
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