Scotland’s STV ‘exploring strategic options’ as advertising revenue slides 10%

STV Group in Scotland has revealed its advertising revenue slumped 10% year-on-year as the company continues to feel the impact of a “challenging macroeconomic climate.”

Rufus Radcliffe

Issuing a pre-close trading update for 2025, STV Group’s notice of results showed that total advertising revenue for the fourth quarter of last year is expected to be down 10%. That figure is also the year-on-year decline, with a soft ad market hitting company earnings.

The order book of in-house production arm STV Studios (STVS) was also down from the previous quarter. Revenue of £33m (US$44m) was recorded at the close of the year, a drop from the £40m reported at the end of September, with commissioning activity in the overall TV sector described as “remaining subdued.”

Rufus Radcliffe, chief executive of STV Group, said it is “exploring the strategic options that are emerging given the rapidly evolving media landscape.”

STVS and its subsidiary labels make shows such as Belfast-set police procedural Blue Lights (Two Cities Television for BBC One) and reality competition series The Fortune Hotel (Tuesday’s Child for ITV and STV).

STV Group’s guidance predicts that group revenue is expected to be towards the top end of the guidance range of £165m to £180m, with adjusted operating profit in line with the current consensus of £11.4m.

The year-end net debt position is expected to be towards the lower end of the guidance range of £45m to £50m.

Last September, the group instigated a “comprehensive” cost savings strategy that halted development activity at STV Studios Entertainment and ceased further investment in Ex-Rated maker Mighty Productions. The trading update confirmed that those measures will deliver a £2.5m cost reduction in 2026 as planned.

Despite market challenges, STV Group has established its new audio business with the launch of STV Radio this month “to early positive response from the advertising market and audiences.”

The group’s full-year results for the year ended December 31 will be announced in mid-March.

Radcliffe said: “The macro-uncertainty of second half 2025 has continued into early 2026 with subdued advertising and commissioning markets persisting, although the upcoming 2026 Fifa World Cup provides an important event for advertisers and viewers alike.

“We are on track to realise previously identified cost savings to protect profitability and provide balance sheet resilience.

“Our award-winning studios team continues to feed a strong pipeline of new potential projects alongside delivery of returning series; and our new growth venture, STV Radio, is off to a promising start. We are also exploring the strategic options that are emerging given the rapidly evolving media landscape.”