STV Group (LON:STVG) reported full-year 2025 results in line with guidance, with management emphasizing “disciplined delivery” amid what it described as a difficult advertising and commissioning environment. The company posted group revenue of GBP 176.9 million and adjusted operating profit of GBP 11.6 million, while outlining continued progress on cost reduction and new commercial initiatives, including the launch of STV Radio in January.
Full-year results: revenue down 6%, profit down 44%
Finance director Lindsay summarized the year’s key financials, noting they were consistent with the trading update issued in January. Group revenue was about GBP 177 million in 2025, down 6% year-on-year, with advertising identified as the primary driver of the decline. Studios revenue held up comparatively well at GBP 83 million, down 1%, which management said was underpinned by scripted activity.
Adjusted operating profit of GBP 11.6 million declined 44% from the prior year, with an operating margin of just under 7%. Lindsay said profitability in both the Audience and Studios divisions was down 35% year-on-year, citing the reduction in high-margin advertising revenue, lower new format sales, and cost pressures.
Advertising trends and early-year outlook
Management said the company was not seeing a significant change in the advertising market moving into the start of 2026. The company’s Q1 outlook reflected weaker regional linear performance compared with 2025, which Lindsay attributed to a strong prior-year comparison and some larger advertisers rephasing spending to later in the year.
However, management pointed to early momentum in World Cup-related commercial activity, stating that advanced sales for World Cup advertising and sponsorship packages were “going well” and supported expectations for a stronger Q2. Lindsay also noted that the audience division’s operating leverage could work in the company’s favor when the World Cup is on screens.
Cost savings, cash, and balance sheet items
STV reiterated that its cost savings program is on track, targeting GBP 8 million of permanent savings by full-year 2026. Management provided detail on delivery against previously announced targets:
- A GBP 5 million annualized savings target announced in March 2024, with just over GBP 4 million delivered so far and the company on track to meet the target by the end of 2025.
- An incremental GBP 3 million savings target announced in September 2025, with GBP 2.5 million expected to be realized in 2026, largely through headcount reduction with actions taken in Q4.
Savings were described as being realized across the business, mainly in third-party spend, and included actions such as closing certain creative labels. Areas cited included broadcast operations, freelance activity, marketing, post-production facilities, and support functions. Management said work was ongoing in news, pending Ofcom’s decision on proposed license changes, expected after the Scottish election in May.
On adjusting items, Lindsay said most write-offs were recognized in the first half. Restructuring costs were GBP 1.7 million, representing redundancy costs associated with the GBP 3 million cost-saving program announced in September. Management said it had previously flagged a “cost of change” of around GBP 2 million and had come in slightly below that level.
Net debt at year-end was just over GBP 45 million, at the bottom end of guidance, and reflected a lower value of production financing than the prior year following receipts from commissioners. Leverage was 2.5x and interest cover was 6.1x, both within covenant limits. Management said it expected net debt and leverage to rise slightly before reducing again by year-end, noting that World Cup-related advertising cash collection would occur in Q3.
STV also noted its pension accounting deficit reduced to GBP 39 million from GBP 48 million a year earlier, and said it remained on track to achieve full funding on a technical provisions basis by October 2030. The company said it had agreed contribution payment flexibility with trustees, allowing deferral of payments due in 2026 into 2027, and expected to use that flexibility while trading remains challenging.
Dividend decision and strategic positioning
Consistent with its emphasis on financial discipline, the board said it is not recommending a final full-year 2025 dividend “to preserve flexibility and liquidity as trading stabilizes,” but intends to return to paying a dividend when it is prudent to do so.
Chief executive Rufus described 2025 as a “tough year” for U.K. media, citing ongoing shifts in audience behavior, macro uncertainty, and slower commissioning. Against that backdrop, management said it remained focused on its FastFwd strategy, which includes bringing broadcasting, streaming, and audio together under one Audience plan, expanding advertising formats and data-driven products, and diversifying revenue through digital audio and other opportunities.
In the Audience division, STV highlighted its reach in Scotland, stating it reaches 75% of Scotland each month, or 3.5 million people, and said 97% of the top 500 overnight audiences in 2025 were on STV. The company said STV Player had a record year with growth in streaming hours and daily active users, despite total viewing declining in line with market trends.
STV Radio launched on Jan. 6 and management said it had a strong early start, onboarding 23 brands, including five entirely new to STV, while existing advertisers increased investment by adding radio. Official audience data is expected in August. STV also discussed STV News, noting Ofcom is consulting on a proposal for a simplified 6:00 p.m. news program and accelerated digital expansion, and said digital news grew by 350% in 2025.
On the advertising product roadmap, STV pointed to pause ads launched in November, with 15 regional brands already live, and described STV ADapt as an SME entry point using AI-generated creative, currently delivered through STV Player and expected to scale through linear addressable in the second half of 2026.
Studios update: scripted momentum, unscripted focus, and new opportunities
In Studios, management said it continued to show resilience in a challenging commissioning environment. The company highlighted several scripted titles and partnerships, including Blue Lights (Series 3 aired; Series 4 in production), Amadeus (described as Sky’s most-watched drama in 2025), Criminal Record (Series 2 expected on Apple TV), and The Witness (its first Netflix show, delivered and landing later in the year). It also noted Channel 4 commissioned new drama Army of Shadows.
In unscripted, STV said it had 17 returning series and 14 new returnable formats, and noted Channel 4’s recommission of Game of Wool. Management described a market trend toward proven, repeatable formats, while also saying demand for standout premium scripted content remains strong as streamers focus on fewer, higher-impact titles.
Looking ahead, STV outlined a “drama pods” model—small partnerships with writers, producers, or on-screen talent—to scale scripted output with financial discipline, with greenlit projects to be co-produced with existing drama labels. The company also discussed exploring digital-first content, citing its May 2025 investment in Fan Club as an early source of insight. Management cited an estimated U.K. addressable market of over GBP 1.6 billion for digital-first content and forecast growth of around 10% CAGR through 2030, while emphasizing a “disciplined, capital-light” approach.
For the outlook, management remained cautious on near-term macro conditions and said advertising recovery is uneven and commissioning remains slower than historic norms. Still, it cited reasons for optimism in 2026, including the expanded Men’s FIFA World Cup, the scaling of STV Radio, new digital ad formats, and international commissions for Studios. Rufus also said the company has secured its first unscripted commission for a U.S. streamer, which it expects to announce in the coming weeks.
About STV Group (LON:STVG)
STV’s exciting vision is to become Scotland’s leading platform for audiences and advertisers and a global content powerhouse.
On-air, STV reaches more than two in three Scottish adults every month through its TV channel and streaming service, STV Player. It will soon expand its audience even further by launching an audio division and a major new Scotland-focused commercial radio station.
STV Studios is a portfolio of 20+ production labels based across the UK’s nations and regions, creating world-class entertainment for UK and international networks and streamers including Apple TV+ drama Criminal Record, global phenomenon LEGO Masters, antiques favourite, The Travelling Auctioneers for BBC and reality juggernaut The Fortune Hotel for ITV.
