STV Group (LSE:STVG), the Scottish broadcaster behind STV, STV Player and STV Studios, reported revenue of £66.1 million for the six months to 30 June, down 27% from £90 million a year earlier.
Total advertising revenue rose 5% to £48.1 million, slightly ahead of guidance and boosted by the FIFA World Cup, but Studios revenue dropped to £15.5 million from £42.2 million after a strong scripted programme benefited the first half of 2025.
Adjusted operating profit fell 12% to £5.9 million, with Audience division profit up 21% to £11.1 million offset by a Studios adjusted operating loss of £3.2 million.
A non-cash impairment of £25.4 million in Studios, reflecting short- to medium-term uncertainty over commissioning decisions, drove the group to a statutory operating loss of £20.5 million, against a £3.3 million profit a year earlier.
Net debt fell to £42.9 million from £45.3 million at the start of the year, with leverage at 2.4 times EBITDA against a covenant maximum of 3.75 times.
"Our first half performance was in line with our expectations and previous guidance," said chief executive Rufus Radcliffe, noting World Cup-driven advertising and disciplined cost management helped offset weaker Studios profitability.
The board is not proposing an interim dividend, citing the uncertain trading environment and a focus on preserving financial flexibility.
Cost cuts remain on track to deliver £8 million in annualised run-rate savings by the end of the year, following restructuring that cut around 60 roles.
Third-quarter total advertising revenue is expected to fall around 5% year-on-year, while delays in commissioning decisions mean full-year Studios performance is now expected to be breakeven, with 2027 profit dependent on decisions on a small number of material commissions.
News Intelligence what this means for the company
STV Group's revenue collapsed 27% to £66.1 million in H1, with Studios revenue plummeting 64% to £15.5 million after a strong scripted programme in the prior-year period lapped out. A £25.4 million non-cash impairment in Studios—reflecting commissioning uncertainty—flipped the group into a £20.5 million statutory operating loss. While advertising revenue rose 5% to £48.1 million (boosted by FIFA World Cup coverage) and net debt improved to £42.9 million, the company has suspended its interim dividend and now expects Studios to break even for the full year, with 2027 profit dependent on a small number of material commissions.
The impairment signals structural weakness in Studios' ability to secure consistent commissions, not a one-off timing miss. With Q3 advertising revenue expected to fall ~5% year-on-year and full-year Studios profit now at breakeven (versus prior expectations of profitability), the company faces a material earnings headwind. Leverage at 2.4x EBITDA remains within covenant, but the dividend suspension and focus on 'financial flexibility' suggest management sees limited near-term visibility to restore cash returns.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
