STV Group plc (LSE:STVG) has indicated that full-year 2025 revenue is expected to land toward the upper end of its £165 million to £180 million guidance range, with adjusted operating profit forecast to meet market expectations at around £11.4 million. This comes despite an estimated 10% decline in total advertising revenue across both the fourth quarter and the full year, reflecting ongoing macroeconomic pressure on advertising spend.
To offset the softer revenue environment, the group is implementing further cost reduction measures. Savings initiatives announced in September are expected to generate £2.5 million of additional cost benefits in 2026, on top of a previously targeted £5 million annual run-rate. STV also expects year-end net debt to sit toward the lower end of its £45 million to £50 million guidance range. Within its studios division, the company closed 2025 with a £33 million order book, despite subdued commissioning activity, while its recently launched STV Radio platform has delivered an encouraging early response as the group adapts its strategy to a more challenging advertising landscape and evaluates longer-term strategic options.
From an outlook perspective, STV’s assessment remains mixed. Financial risk persists due to negative equity and rising debt levels, despite the earnings recovery and positive cash flow achieved in 2024. Valuation remains a notable positive, supported by a low price-to-earnings ratio and a high dividend yield, while technical indicators are broadly neutral, reflecting mixed signals across key moving averages. Recent corporate updates provide some support, though they remain secondary to broader market conditions.
More about STV Group
STV Group plc is a UK-based media company operating across broadcasting, content production and related media services. The group’s activities include its television operations, a growing studios business, and its recent expansion into audio through the launch of STV Radio, positioning STV to serve advertisers and audiences across an evolving media and advertising landscape.
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