STV Group (STVG) H2 2024 earnings summary

Executive summary

• Achieved strong 2024 results with total revenue up 12% and adjusted operating profit up 3% year-over-year, despite a challenging advertising and commissioning environment.

• Studios division delivered record revenue, expanded to 21 labels, and enhanced international scale and IP library.

• Digital revenue grew 8% year-over-year, with STV Player seeing 13% growth in registered users and 36% growth in ad-free subscribers.

• Cost control measures exceeded targets, with GBP 1.9 million savings in 2024 and a run-rate target of GBP 5 million per annum by 2026.

• Board proposes a final dividend of GBP 0.074, consistent with the prior year.

Financial highlights

• Total revenue reached GBP 188 million, up 12% year-over-year, with digital revenue at GBP 21.8 million (+8%).

• Adjusted operating profit was GBP 20.6 million, up 3% year-over-year; adjusted EPS also up 3% to GBP 0.29.

• Studios revenue grew 26%, driven by the Two Cities acquisition; digital gross revenue up 8%.

• Net debt at GBP 28.8 million, in line with the start of the year; leverage at 1.1x.

• Statutory operating profit more than doubled to GBP 13.2 million (+106%), reflecting lower adjusting items.

Outlook and guidance

• Total advertising revenue for Jan–Apr 2025 expected to be slightly down: national linear down 5%, regional slightly up, VOD up 6%.

• Studios order book at GBP 76 million as of February 2025, with most scheduled for delivery this year.

• Additional GBP 1.7 million in cost savings targeted for FY25; GBP 500,000 increase in National Insurance will impact 2025.

• Strategy refresh to be presented in May, building on current strengths.