STV Group (STVG) Trading Update summary

Overall financial performance

• Full year revenue and adjusted operating profit expected to be materially below consensus due to worsening commissioning and advertising markets.

• Group revenue forecasted between £165m and £180m with an adjusted operating margin of around 7%.

• Incremental cost savings of £750k identified, raising FY25 target to £2.5m, with further savings expected in FY26.

• Group core net debt at end of June was £30m, with production financing reduced to £5m.

Audience division performance

• H1 total advertising revenue (TAR) up 3% year-on-year, but Q3 outlook now down 4% compared to 2023.

• Q3 TAR expected to decline by about 8%, with July down 20% and August/September broadly flat.

• FY25 Audience division revenue expected between £90m and £95m, with margins of 13% to 15%.

STV Studios update

• UK commissioning market deterioration in late H1 and early H2 has delayed or cancelled some unscripted projects.

• 13 unscripted commissions secured in Q2, but delivery timelines have shifted.

• Scripted labels remain strong, with ongoing projects for Netflix, Apple, Sky, and BBC.

• Full year STV Studios revenue now expected between £75m and £85m at a 4% margin; order book reduced to £54m.