STV Group has confirmed a strategic cost-cutting programme that includes halting development activity within STV Studios Entertainment and ending further investment in Mighty Productions, as the broadcaster responds to weakening advertising revenues and a slowdown in unscripted commissions. The moves were outlined in the company’s H1 2025 interim results and further detailed by STV in statements to industry outlets.
Total group revenue for the first half of 2025 held steady at £90.0 million, compared to £90.4 million in the same period last year. However, total advertising revenue dropped 10% year-on-year to £45.6 million, down from £50.7 million in H1 2024, reflecting broader market softness and delayed commissioning decisions. As a result, statutory operating profit fell to £3.3 million from £6.5 million, while adjusted operating profit dropped to £6.7 million, down from £10.7 million. Operating margin decreased to 7.4%, compared to 11.7% last year.
STV Studios proved more resilient, reporting revenues of £42.2 million for the period—up 13% from £37.5 million in 2024—despite the volatile environment. The division secured 30 new commissions in the first half of the year, including “The Troops” (BBC Scotland), “The Travelling Auctioneers” (BBC One), and the 32nd season of “Antiques Road Trip”. Other notable returns included “The Hit List”, “The Yorkshire Auction House”, and “The Fortune Hotel” Season 2 for ITV. Two Cities, a scripted label acquired in 2024, also secured the Channel 4 commission “Army of Shadows”. The company noted that most of STV Studios’ adjusted profit typically falls in H2 due to production seasonality.
Still, challenges in the unscripted market have triggered a review of the studios’ label structure. As a result, all development activity in STV Studios Entertainment will be paused, and further capital investment in Mighty Productions—known for “Ex Rated” and “Style Fixers”—will be discontinued. These steps form part of a broader plan to deliver £3 million in annualized cost savings, approximately 8% of the company’s addressable cost base. Around £2.5 million of those savings are expected in 2026, with a one-time restructuring cost of £1 million.
STV also reported a forward order book of £40 million as of August 2025, with £19 million expected to convert into revenue this year and the rest in 2026. Financially, the group maintained a leverage ratio of 1.6× net debt to EBITDA—well within covenant limits—and secured increased banking facility headroom from £70 million to £75 million to boost flexibility.
Rufus Radcliffe, Chief Executive of STV, stated, “I have every confidence that STV will navigate the currently difficult trading environment in both our key markets, successfully implement our FastFwd strategy, and deliver sustainable value to our shareholders. We recognise that our cost savings programme impacts colleagues across the business, and we are committed to supporting people through this change.”
Radcliffe added, “The launch of STV Radio is on track, viewing on the STV Player is at an all-time high, and we are delighted that ‘Army of Shadows’ has been commissioned by Channel 4 from Two Cities.”
Despite suspending its interim dividend, STV has reaffirmed its full-year financial outlook. The company has also initiated plans to defer non-essential capital expenditure and adjust pension contribution timelines in collaboration with trustees to preserve liquidity.
As STV tightens focus on core scripted and factual production, the long-term viability of its entertainment labels will depend on market recovery. In the near term, the group is betting that cost discipline, combined with a steady production slate and growing streaming footprint, will be enough to weather a tough year for UK broadcasters.