Glasgow-based media firm STV Group plc on Friday published an AGM trading update outlining “continued pressure in the advertising and commissioning markets.”
STV outlined: “Q1 Total Advertising Revenue (TAR) better than guided at -4% (guidance -5%), driven by digital advertising.
“Q2 TAR expected to be up c.10%, benefiting from strong advertiser demand around FIFA Men’s World Cup.
“H1 adjusted operating loss in STV Studios of around £3m, in line with management expectations, and impacted by continuing subdued commissioning markets.
“First unscripted commission for an international streamer – The Mob (Primal Media) for Disney’s Hulu.
“Exclusive partnership with Kevin McKidd’s Ferryman Films to strengthen our scripted pipeline.
“Cost reduction plan on track to deliver annualised run rate savings of £8m by end FY26.
“Ofcom approval secured for changes to both STV’s Public Service Media (PSM) licences securing the future delivery of a financially sustainable news service.”
STV Group’s share price fell about 4.5% on Friday. The company’s shares have fallen about 70% over the past five years to around £1 to slash the firm’s stock market value to roughly £48 million.
In its outlook, STV said: “H1 TAR expected to be up c.4% with World Cup effect more than offsetting softness in underlying advertising market.
“Expectations are for current underlying advertising and commissioning market dynamics to continue into H2 given uncertain geopolitical backdrop.
“Key commissioning decisions expected in Q3 that may influence production revenue and margin recognition across FY26 and FY27.
“STV Radio launched as planned in January, advertisers and listeners responding well, and first RAJAR figures expected in August.”
STV CEO Rufus Radcliffe said: “We are making progress with performance in H1 in line with our expectations, despite continued pressure in the advertising and commissioning markets.
“We are seeing encouraging early signs from the diversification of our advertising proposition through pause ads, STV Adapt – our AI data-driven addressable ad platform – and new growth venture, STV Radio.
“The STV Studios team continues to deliver in a slow market, with recent commissions including a new reality format for Disney’s Hulu and a returnable drama for RTE.
“Whilst we expect a boost in advertising revenue from the FIFA World Cup, we remain cautious on the outlook for the second half of the year given the underlying softness in the advertising and commissioning markets driven by the continuing uncertain geopolitical situation.
“Against that backdrop, we continue to focus on those elements we can control and are taking the right steps to position the business strongly for the medium term.”