STV Group has released a trading update this morning, with total advertising revenue expected to be down 10% year on year.
However the trading update showed that group revenue was expected to be “towards the top end of the guidance range” of £165m-£180m, with adjusted operating profit £11.4m.
Total Advertising Revenue (TAR) fell 10% during the last quarter and for the same amount over the year, which it explained reflected the “continued impact of the challenging macroeconomic climate on the advertising market.”
While this had continued into this year, it’s hoping that the 2026 FIFA World Cup will provide an advertising boost.
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The company also provided an update on its cost-saving measures, which it stated would deliver a £2.5m cost reduction in 2026, leading to a target of £5m by the end of this year.
Turning to STV Studios, that closed the financial year with an order book of £33m (Aug-25: £40m). This, it stated, was despite being in a “sector where activity remains subdued.”
“STV will deliver a full year 2025 in line with current expectations. The macro-uncertainty of H2 2025 has continued into early 2026 with subdued advertising and commissioning markets persisting, although the upcoming 2026 FIFA World Cup provides an important event for advertisers and viewers alike. We are on track to realise previously identified cost savings to protect profitability and provide balance sheet resilience,” said Rufus Radcliffe, CEO STV plc.
“Our award-winning Studios team continues to feed a strong pipeline of new potential projects alongside delivery of returning series; and our new growth venture, STV Radio, is off to a promising start. We are also exploring the strategic options that are emerging given the rapidly evolving media landscape.”
At the start of 2026, it launch its first audio service, with STV Radio, which has had “an early positive response from the advertising market and audiences.”
