STV Group targets further cost cuts as advertising slump continues

STV Group PLC on Thursday said it is confident it can navigate the current difficult trading environment, despite falling into the red at the half-year stage and passing on paying a dividend.

The Glasgow-based media company swung to a pretax loss of £200,000 in the six months to June 30 compared to a £4.8 million profit the year prior. Operating profit dropped 49% to £3.3 million from £6.5 million.

Revenue edged down 0.4% to £90.0 million from £90.4 million with total advertising sales down 10% to £45.6 million from £50.7 million, partly reflecting tough comparatives from the Euro 2024 football tournament. Studios revenue grew 13% to £42.2 million from £37.5 million, despite a difficult commissioning market.

No dividend was declared compared to the 3.9 pence per share paid last year, while net debt increased to £35.7 million from £28.0 million. STV said it will review the position on the dividend alongside its full-year results.

STV said it expects a cost savings programme to deliver additional cost savings of £3 million per annum, with around £2.5 million to be delivered in financial 2026 at an expected cost of £1 million. These savings are incremental to the previously announced target of a £5 million run rate by the end of 2026.

The firm left guidance for 2025 unchanged and said third quarter total advertising revenue is expected to be down 8% with visibility ‘limited’. Current indications for October look similar, it added.

Chief Executive Rufus Radcliffe said he had confidence that STV will navigate the ‘currently difficult trading environment in both our key markets’ and deliver ‘sustainable value to our shareholders.’

He said the cost cuts are necessary to ‘strengthen our financial resilience and position STV for long-term growth.’

Shares in STV were down 4.4% at 109.50 pence each in London on Thursday.

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