STV Group (STVG) H1 2025 earnings summary

Executive summary

• H1 2025 revenue held steady at £90.0m, with Studios growth offsetting a 10% decline in advertising revenue and adjusted operating profit falling 37% to £6.7m due to lower high-margin advertising and inflationary pressures.

• Leadership transition announced, with Clive Wiley appointed as new Chair, supporting the Fast Forward to 2030 strategy.

• No interim dividend proposed due to ongoing market uncertainty and a difficult UK unscripted market.

• Studios order book at end of August stood at £40m, with £19m revenue expected in FY25 and £21m in FY26.

• STV Player achieved record H1 viewing, and Studios secured up to 30 new commissions year to date.

Financial highlights

• Total revenue flat year-over-year at £90.0m; adjusted operating profit down 37% to £6.7m, mainly due to lower high-margin advertising revenues.

• Studios revenue increased 13% to £42.2m, offsetting declines in other segments.

• Total digital revenues grew 5% to just under £11m, driven by VOD.

• Net debt at half-year was £35.7m, with leverage at 1.6x, expected to rise to £45–50m by year-end.

• Adjusted EPS dropped 54% to 7.1p; adjusted operating margin declined to 7.4% from 11.7%.

Outlook and guidance

• FY25 revenue guidance maintained at £165–180m, with group adjusted operating margin expected at approximately 7%.

• Q3 total advertising revenue expected to decline 8% year-over-year, with October forecasted to be similar.

• Studios' 2026 performance expected to be broadly in line with 2025, given ongoing market difficulties.

• Cost saving expectations for the full year reaffirmed at £2.5m.

• World Cup in 2026 anticipated to boost ad revenues by 3–5% on a full-year basis.