Scotland’s STV Group is to implement a “comprehensive cost savings programme” including stopping “development activity in STV Studios Entertainment” and ceasing further investment in Ex Rated and Style Fixers indie, Mighty Productions.
The news comes as part of the group’s Interim Results for the first half of this year. STV Group said the cost savings plan is in place to “protect profitability and provide balance sheet flexibility in response to the deterioration in the advertising and content commissioning markets, and ensure the business is well set for growth as market conditions improve.”
STV Group says the cost savings programme will deliver additional cost savings of £3m per annum.
The report states that as the number of unscripted commissions slowed in late Q2, “a review of the labels across the portfolio was undertaken resulting in a series of actions including stopping development activity in STV Studios Entertainment and ceasing continued investment in Mighty Productions.”
Across the scripted labels, STV said that in addition to the recently announced commission of a new six-part series for Channel 4 secured by Two Cities Television, “commissioning decisions are expected in the coming weeks on several ideas in advance development.”
So far this year, STV Studios and its labels have secured 30 new commissions including STV Studios Factual orders for new army docuseries The Troops for BBC Scotland and iPlayer; a 5th series of The Travelling Auctioneers for BBC One and the 32nd series of Antiques Road Trip (BBC One). STV Studios Entertainment secured an 11th series of Celebrity Catchphrase for ITV. Crackit Productions secured two series commissions for Channel 4 with Crime Scene Cleaners and Supercruising: Life at Sea and Rumpus Media, which became a wholly owned label in H2 2024, secured a 4-part series from More4.
2025 saw the release of the second series of The Fortune Hotel on ITV from Tuesday’s Child, alongside returners including The Hit List, Antiques Road Trip, The Travelling Auctioneers and The Yorkshire Auction House. Blue Lights returns to the BBC on 29 September for a third series.
The report shows that STV Studios delivered revenue of £42.2m in the first half of 2025 (2024: £37.5m), growth of 13% “in a very difficult market. The seasonality of the division is such that most of the adjusted operating profit is generated in the second half of the year and the first half breakeven performance continued to reflect that traditional H1/H2 split.”
Rufus Radcliffe, Chief Executive, commented: “I have every confidence that STV will navigate the currently difficult trading environment in both our key markets, successfully implement our FastFwd strategy, and deliver sustainable value to our shareholders.
“We recognise that our cost savings programme impacts colleagues across the business, and we are committed to supporting people through this change. These steps are necessary to strengthen our financial resilience and position STV for long-term growth.
“The launch of STV Radio is on track, viewing on the STV Player is at an all-time high, and we are delighted that Army of Shadows has been commissioned by Channel 4 from Two Cities.”
Staff Reporter
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