STV Group has issued a profit warning, citing “further deterioration in the commissioning and advertising markets towards the end of H1 and into H2.”
The warning has been made in advance of its Interim Results for the six months ended 30 June 2025, which will be announced in September 2025.
While lower advertising levels have affected its broadcast operation, the downturn in commissioning has particularly affected STV Studios unscripted labels. While the second quarter of the year saw 13 unscripted commissions secured, some projects in advanced development are not being green-lit and some commissions being delayed to 2026.
In scripted, STV labels which include Blue Lights producer Two Cities, are “strong’ and currently working on projects for Netflix, Apple, Sky and the BBC.
STV Studios is developing an international business, but most customers remain UK-based and so the division has been disproportionately impacted by the recent slowdown in the domestic market.
The revised full year outlook for STV Studios is for revenue in a range from £75m to £85m at an adjusted operating margin of c.4% as lower activity volumes impact fixed overhead recovery.
The forward order book is now £54m, compared to £66m at the end of April. The reduction is a product of the slowdown in commissions won and the recognition of revenue on programmes in production.
Rufus Radcliffe CEO of STV Group says: “The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate.
“We’re making good progress in combining and streamlining our Broadcast and Digital businesses into a new Audience division, and launch plans for the creation of our radio station are going well, with key appointments made and infrastructure plans forging ahead.
“STV Studios delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of H1 and into the second half of the year. However, in addition to winning new and repeat business in H1, we have completed production on key titles with international appeal, including high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One, with the second series of The Fortune Hotel airing on ITV and STV this summer – and our development pipeline is strong.
“We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business.
“There continues to be strong long-term growth potential within our business despite the short-term challenges, and we remain laser focused on delivering on the strategic plan we outlined earlier this year.”
Pippa Considine
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