STV Group 2025 Results Meet Guidance with Advertising Revenue Down 10%

STV Group trading update: revenue near top end, ads down 10%, and eyes on 2026 World Cup

STV Group has delivered a steady pre-close update for 2025: revenue is expected towards the top end of guidance, profits meet consensus, and cash control looks tighter than flagged. The snag is advertising, which fell around 10% in Q4 and across the full year, with that softness sticking around into early 2026.

Here’s what matters for investors and why.

Key numbers at a glance

Metric	Figure	Notes
Group revenue (FY25)	Towards top end of £165m-£180m	Precise number not disclosed
Adjusted operating profit (FY25)	In line with consensus of £11.4m	As guided
Total Advertising Revenue (TAR)	Q4: down c.10% YoY; FY: down c.10%	Weak market conditions continued into early 2026
Net debt (year end)	Towards lower end of £45m-£50m	Exact figure not disclosed
Cost savings (2026)	£2.5m reduction	Incremental to previously announced £5m run-rate target by end-2026
STV Studios order book	£33m (Aug-25: £40m)	No cancellations notified; sector remains subdued
New Audio business	STV Radio launched Jan 2026	Early positive response from advertisers and audiences

Revenue and profit: steady execution despite the ad headwind

Guiding to the top end of £165m-£180m revenue range is a quiet positive, especially with advertising down around 10% for the year. Adjusted operating profit tracking to the £11.4m consensus reads as solid execution and decent cost discipline.

We don’t get segment splits or cash flow detail here, but landing revenue near the top end against a weaker ad backdrop suggests that other revenue streams helped to cushion the blow. The fuller picture will come with results on 17 March 2026.

Advertising down 10%: what it means and why it matters

Total Advertising Revenue fell c.10% in Q4 and for the full year. That’s material, and management says these market conditions persisted into early 2026. In plain English: the ad cycle is still tough.

The potential swing factor for the year is the 2026 FIFA World Cup, which management highlights as an important event for advertisers and viewers. Big tournaments typically bring both audience spikes and premium ad slots. The question is whether that tailwind offsets a slow first half if the softness persists.

Cost savings and net debt: resilience first

STV expects year-end net debt towards the lower end of the £45m-£50m guidance range. That hints at tighter cash control into the year-end, which is a modest positive for balance sheet resilience. Leverage isn’t disclosed.

On costs, actions announced in September are set to deliver a £2.5m reduction in 2026. Crucially, that’s incremental to the previously announced £5m run-rate target by end-2026. In other words, two layers of savings are being pursued, which should help defend margins if advertising remains sluggish.

STV Studios: order book holds up, but the market is subdued

The Studios division closed 2025 with an order book of £33m, down from £40m in August as programmes were delivered. There have been no cancellations notified, which is reassuring given that commissioners remain cautious.

Management describes a strong pipeline of new potential projects alongside returning series. The pipeline is not quantified, so we’ll need to wait for March to gauge the balance of visibility versus risk. For now, the absence of cancellations is the key line.

New Audio push: STV Radio launches with early interest

STV has stood up its new Audio business on time, launching STV Radio this month. The early read across is positive from both advertisers and audiences, though performance metrics are not disclosed.

Audio can be attractive for diversifying ad inventory and building direct relationships with listeners. It’s early days, so consider this an option value story for 2026 rather than a driver of near-term numbers.

Strategy and the “options” comment

One line to note: STV is “exploring the strategic options that are emerging given the rapidly evolving media landscape.” That’s deliberately broad and no options are specified. It could span partnerships, investments, or portfolio moves, but nothing is disclosed at this stage.

Investors should treat this as a flag that management is open to change, not a signal of any particular outcome.

Outlook into 2026: cautious start, event-led upside

• Early 2026 advertising and commissioning markets remain subdued.
• Cost actions provide a clearer line of defence for margins in 2026.
• The 2026 FIFA World Cup is the major event that could catalyse advertising spend.
• Studios has visibility with a £33m order book and no cancellations notified.
• STV Radio introduces a new growth vector, but contribution is not quantified.

My take for investors

This is a respectable update in a tough market. The good: revenue towards the top end of guidance, profit in line with consensus, net debt at the lower end of the guided range, and incremental cost savings coming through. The less good: advertising down 10% with no immediate turn, and Studios operating in a subdued commissioning environment.

Near term, it’s about resilience and optionality. The savings plan and debt position give STV some breathing room. Medium term, the World Cup should help, and any pickup in commissioning would support Studios. The new audio venture is a small but interesting swing factor.

Key risk remains the macro and the pace of recovery in advertising. Key watchpoints at results: segment detail behind revenue resilience, cash conversion, more colour on Studios’ pipeline timing, and any specificity on those “strategic options”.

Diary date: full-year results

STV will report full-year results for the year ended 31 December 2025 on 17 March 2026.