STV Group (STVG) H2 2024 earnings summary

Executive summary

• Achieved strong 2024 results with all main revenue streams growing year-over-year, including total revenue up 12% and adjusted operating profit up 3%, despite a challenging advertising and commissioning environment.

• Studios division delivered record revenue, expanded to 21 labels, and enhanced international scale and IP library.

• Digital revenue grew 8% year-over-year, with STV Player seeing significant user and viewing growth.

• Cost control measures exceeded targets, with GBP 1.9 million in savings and further efficiencies planned.

• Strategy refresh underway, focusing on studios growth, advertising innovation, and new revenue streams, to be presented in May.

Financial highlights

• Total revenue reached GBP 188 million, up 12% year-over-year, with national advertising at GBP 66.8 million (+4%), regional at GBP 15.6 million (+4%), and digital at GBP 21.8 million (+8%).

• Adjusted operating profit was GBP 20.6 million, up 3% year-over-year; adjusted EPS also up 3% to GBP 0.29.

• Studios revenue grew 26%, driven by acquisitions, with adjusted operating profit up 18% to GBP 6.1 million.

• Net debt at GBP 28.8 million, leverage at 1.1x, and operating cash conversion at 134%.

• Proposed final dividend of GBP 0.074, full year GBP 0.113, unchanged from 2023.

Outlook and guidance

• Total advertising revenue for the first four months of 2025 expected to be slightly down: national linear down ~5%, regional slightly up, VOD up ~6%.

• Studios order book at GBP 76 million as of February 2025, with most scheduled for delivery this year.

• Cost savings on track, with an additional GBP 1.7 million targeted for FY25; National Insurance increases will add GBP 500,000 to 2025 costs.

• Strategy refresh to be presented in May, building on current strengths.