STV Studios delivers growth despite ‘challenges’ as STV Group unveils Q3 results
Scotland’s STV Group says the company is performing in line with market expectations “despite continued challenging advertising and commissioning market conditions,” as it released a third quarter trading update.
Rufus Radcliffe
The Glasgow-based group has reported strong financial results for its production arm STV Studios, with the forward orderbook for content standing at £92m (US$115m) as of October 31. The division has delivered revenue of £24m and won commissions with a value of £15m since the end of July.
Commissions in Q3 included a second season for drama Criminal Record, for Apple TV+. Orders taken for Q4 include two original new formats for wholly-owned label Crackit TV – Crime Scene Cleaners (10×60’) for Channel 4, and Hunting Britain’s Bedroom Predators (3×90’) for Paramount-owned Channel 5.
Total advertising revenue (TAR) during Q3 was said to be ahead of guidance, up 5%. However, Q4 TAR is expected to be down by around 10%, mostly due to comparisons with the Rugby World Cup, held during September and October. TAR is expected to be up around 2-3% for the full year of 2024.
STV reports that its streamer STV Player is continuing to drive digital viewer engagement, thanks to titles such as police drama Red Rock and archive episodes of classic Liverpool-set soap Brookside.
The group continues to focus on cost control across the business, with a three-year strategy on course to deliver at least £1.5m of savings in 2024 and hit the target £5m annual run rate by the end of 2026.
Rufus Radcliffe, STV chief executive, said: “I joined STV on 1 November and have been very impressed by its strong foundations and prospects for future growth. I’ve been struck by the creativity, dynamism and commitment of the team and I look forward to working closely with them to build on recent successes.
“There’s no doubt that we continue to operate against a challenging advertising and commissioning backdrop, and we will continue to take action to mitigate against that where possible.
“The acquisition strategy in STV Studios is helping us to deliver in a tough market, with new commissions secured for original formats since our interim results.
“We expect the full year TAR to be up 2-3%, boosted by the Euros earlier this year. The winter schedule brings the return of entertainment juggernaut, I’m A Celebrity… Get Me Out of Here, and The 1% Club. Looking further ahead, we have a strong drama offering at the start of 2025 on STV and STV Player.”
