STV saw group revenue drop in the first half of 2026 after a decline in commissions contributed to a sharp fall in income in its key Studios business, which fell to a loss.
STV added in its H1 interim update that the Studios division is subject to an “ongoing portfolio review… given market conditions.”
Total revenue for the six months ended 30 June 2026 fell 27% from £90m to £66.1m, with Studios accounting for the large part of the decrease, down from £42.2m to £15.5m. Delays in commissioning decisions mean it is expected to break even this year.
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World Cup advertising revenue helped on the income side, spearheading a 5% increase to £48.1m, although adjusted operating profit still came in 12% down at £5.9m, impacted by a £3.2m adjusted operating loss in Studios.
Audience adjusted operating profit rose 21% to £11.1m. A statutory operating loss of £20.5m was recorded, largely due to a non-cash asset impairment of £25.4m in Studios, reflecting market uncertainties.
Net debt stood at £42.9m, and the company is on track to deliver £8m in annualised cost savings. No interim dividend is proposed at the present time.
Last month the company said the controversial STV Radio, launched in January, was beating audience expectations and was one of the top ten most-listened-to commercial radio stations in Scotland.
The Glasgow-based broadcaster added that the restructuring of its television operations is complete with a reduction of about 60 roles across the business.
Rufus Radcliffe, chief executive, said: “Our first half performance was in line with our expectations and previous guidance.
“The boost to advertising revenue and viewing from the FIFA World Cup, combined with disciplined cost management, helped offset reduced Studios profitability which reflects the timing of delivery of scripted programming and continued weakness in the commissioning market.”
The Studios division delivered Primal Media’s first commission for Disney’s Hulu and the in-house drama label, newly rebranded Blackhill, gave Netflix a global number one drama in The Witness, continuing the growth of Studios’ international customer base.
Studios also strengthened its scripted pipeline through an exclusive partnership with actor and director Kevin McKidd’s Ferryman Films.
Radcliffe added: “Given the prolonged slowdown in commissioning activity, we have recognised a non-cash impairment charge in Studios, reflecting a prudent reassessment of short- to medium-term market conditions while remaining confident in the long-term growth prospects of our business and the opportunities ahead.
“Our audio venture continued its strong start with STV Radio entering Scotland’s top ten most-listened-to commercial stations after just six months on air, well ahead of our expectations.
“In Q4, we will launch our AI-powered advertising service, ADapt, offering businesses an unrivalled cross-platform audience reach across broadcast, digital and audio in Scotland.”
