STV Group (STVG) H1 2026 earnings summary

Executive summary

• Group revenue fell 27% year-over-year to £66.1m, mainly due to a sharp decline in Studios revenue, partially offset by a 5% increase in total advertising revenue driven by the FIFA World Cup and the launch of STV Radio.

• Adjusted operating profit declined 12% to £5.9m, but adjusted operating margin improved to 8.9% from 7.4% due to cost savings and higher-margin advertising.

• Statutory operating loss was £20.5m, reflecting a £25.4m non-cash impairment in Studios amid market uncertainty.

• Management prioritized efficiency, cost savings, and cash generation, with no interim dividend proposed to maintain financial flexibility.

Financial highlights

• Total revenue declined 27% year-over-year to £66.1m; Studios revenue dropped 63% to £15.5m, while Audience revenue grew 6% to £50.6m.

• Total advertising revenue rose 5% to £48.1m, driven by strong national ad performance around the FIFA World Cup.

• Digital revenue increased 13% to £12.2m, with STV Radio contributing for the first time.

• Adjusted EPS was 7.1p per share, flat year-over-year.

• Loss for the period was £22.3m, with statutory basic EPS at (45.8)p.

Outlook and guidance

• Q3 total advertising revenue is forecast to decline by 5%.

• Studios FY26 expected to breakeven, with FY27 profit dependent on key commissioning decisions.

• Net debt at year end projected between £40m and £45m.

• No interim dividend proposed; position to be reviewed at full-year results.

• Pension contributions of £8m due in Dec 2027, then £10m annually thereafter.