STV Group (STVG) Trading update summary

Trading performance

• Q1 total advertising revenue declined 4%, outperforming guidance of -5%, driven by digital advertising.

• Q2 total advertising revenue expected to rise approximately 10%, boosted by strong demand around the FIFA Men's World Cup.

• H1 adjusted operating loss in studios around £3m, matching expectations and reflecting subdued commissioning markets.

Strategic initiatives and outlook

• First unscripted commission for an international streamer secured, with a Hulu project and a scripted partnership to strengthen the pipeline.

• Cost reduction plan on track to deliver £8m annualised savings by end FY26.

• Ofcom approval obtained for changes to public service media licences, ensuring sustainable news delivery.

• H1 total advertising revenue expected up 4%, with World Cup gains offsetting underlying market softness.

• Key commissioning decisions in Q3 may impact production revenue and margins for FY26 and FY27.

New ventures and operational highlights

• STV Radio launched in January, receiving positive advertiser and listener response; first RAJAR figures due in August.

• Diversification efforts include pause ads, an AI-driven addressable ad platform, and new radio growth venture.

• Studios team delivered new commissions, including a reality format for Hulu and a drama for RTE.