STV Group (STVG) Trading Update summary

Trading performance and outlook

• Total advertising revenue rose 5% in Q1 and is expected to increase 15-20% in Q2, driven by Euro 2024.

• H1 total advertising revenue is forecast to be up 10-12% year-on-year.

• National advertising is projected to grow about 15%, regional by 2% (with SME customers up 10%), and VOD advertising on STV Player by 10% in H1.

STV Studios and content pipeline

• STV Studios has a secured future revenue orderbook of £86m as of May.

• New commissions from Netflix, Sky, and Discovery support the target of £140m revenue by FY26.

• Recent successes include "Criminal Record" (AppleTV+) and "Blue Lights" series 2 (BBC).

• Upcoming programming includes exclusive Euro 2024 coverage.

Cost savings and operational efficiency

• A three-year cost savings plan is on track to deliver £1.5m in 2024, rising to £5m per year by 2026.

• Business modernization and simplification efforts are ongoing to support a digital-first strategy.