STV Group (LSE:STVG) reported first-half 2026 revenue of £66.1 million, down 27% from a year earlier, as lower activity at its Studios division offset growth in advertising revenue.
Total advertising revenue increased 5% to £48.1 million. The company reported adjusted operating profit of £5.9 million, down 12% year-on-year, while adjusted operating margins increased as the revenue mix shifted towards higher-margin advertising and the group implemented cost reductions.
A £25.4 million non-cash impairment relating to the Studios business contributed to a statutory operating loss of £20.5 million for the period.
STV is carrying out a restructuring programme that is expected to generate £8 million of annualised cost savings by the end of 2026. The measures include around 60 job reductions.
The group has also re-phased payments to its defined benefit pension scheme, reducing near-term cash commitments. Leverage stood at 2.4 times and remained within the group’s covenant limits.
Advertising Platform Scheduled for Q4 Launch
STV said it plans to launch STV ADapt, its AI-powered advertising platform, during the fourth quarter of 2026. The platform forms part of the company’s efforts to expand advertising across its television, streaming and audio operations.
The company reported continued audience reach across its media businesses, with STV and STV Player recording the largest commercial share among television and ad-supported streaming platforms in Scotland. STV Radio also recorded its first RAJAR audience figures following its launch.
STV said Ofcom has approved changes to its public service media licences, allowing modifications to the delivery of its news service intended to make the operation more financially sustainable.
Studios Targets Breakeven in 2026
The Studios division continues to face commissioning delays, with STV reviewing its portfolio as it targets breakeven for the business in 2026.
During the period, Blackhill’s The Witness reached the number-one position globally on Netflix, while Primal Media secured its first commission for Hulu.
STV said Studios profitability in 2027 will depend on decisions relating to a small number of large commissions, leaving the timing of future production activity dependent on those commissioning outcomes.
Against this backdrop, the board decided not to declare an interim dividend, citing the need to preserve financial flexibility.
STV Expects Q3 Advertising Revenue to Decline Around 5%
For the third quarter, STV expects advertising revenue to decline by approximately 5%, broadly consistent with the trends recorded in earlier quarters.
The company expects total net debt at the end of 2026 to be between £40 million and £45 million. Alongside its cost-reduction programme, STV continues to review its Studios portfolio while developing its cross-platform advertising operations.
More about STV Group plc
STV Group plc is a Scottish media company operating across broadcast television, streaming, content production and audio. Its businesses include STV, STV Player, STV Studios and STV Radio.
The group generates advertising revenue across television, digital and audio platforms, alongside revenue from television and streaming content production through STV Studios. Its production operations include scripted drama and entertainment programming for U.K. and international customers.
STV is also developing technology-based advertising products, including STV ADapt, and operates under public service media licences in Scotland. Its Studios portfolio includes Blackhill and Primal Media, which produce content for broadcasters and streaming services.
Leave a Reply