Interim Results for the 6 months ended 30 June 2025 and update on cost savings plan

Interim Results for the 6-months ended 30 June 2025

• Total revenue of £90.0m (Jun-24: £90.4m) as Studios growth offsets advertising declines:

• Total advertising revenue (TAR) of £45.6m (2024: £50.7m) down 10%, driven by national linear advertising down 16% impacted by Euros 2024 in the comparator

• Studios revenue grows to £42.2m (2024: £37.5m), up 13%, despite difficult commissioning market

• Adjusted operating profit of £6.7m, down 37% on H1 2024, reflecting decline in TAR and inflationary pressures partly offset by cost savings

• Studios breakeven, in line with prior year and seasonal norm
• Audience profit of £9.1m, down 25% given operating leverage associated with TAR performance

• Statutory operating profit of £3.3m (2024: £6.5m) reflects restructuring costs of £2m associated with review of unscripted label portfolio
  • Loss before tax of £0.2m (2024: profit of £4.8m)

• Net debt of £35.7m, including production financing of £5.2m; lower than start of year (total net debt £38.7m including production financing of £9.9m)

• Leverage (net debt/EBITDA) at half year at 1.6 times (covenant max 3 times)

• STV remains most popular peak-time channel in Scotland; STV Player delivered highest ever H1 viewing, up 8% year on year to 37m hours
• 30 commissions won by STV Studios in 2025 YTD; high-end drama, Army of Shadows, commissioned by C4 for Two Cities in recent weeks
• Plans for STV Radio launch on track
• No change to FY25 outlook as guided in July

* For reconciliation of adjusted to statutory results, see note 8

+ Group banking and production finance facilities, excluding lease liabilities (see note 20)

Cost savings plan and cash management flexibility

• Management is implementing a comprehensive cost savings programme to protect profitability and provide balance sheet flexibility in response to the deterioration in the advertising and content commissioning markets, and ensure the business is well set for growth as market conditions improve.
  • Cost savings programme to deliver additional cost savings of £3m per annum with c.£2.5m to be delivered in FY26 and expected cost of change of c.£1m. These savings are incremental to the previously announced target of £5m run rate by end 2026.
  • Review of the unscripted label portfolio in STV Studios with actions taken to stop development activity in STV Studios Entertainment and make no further investment in Mighty Productions.
• The Group’s 2030 pension deficit recovery plan includes flexibility around the timing of contribution payments during 2026 and 2027.
• The Group recently increased its bank facility from £70m to £75m by accessing £5m of its £20m accordion, and amended covenants to provide increased headroom; currently £30m undrawn.
• Re-phasing of non-essential capital expenditure over next 18-24 months.

Outlook

• No change to full year 2025 outlook as guided in July: Q3 TAR expected to be down c.8%; visibility remains limited with current indications for October looking similar.
• STV Studios total orderbook of £40m at end of August, of which £19m expected to be recognised as revenue in 2025 with the balance in 2026. Commissioning decisions expected in the coming weeks on a number of unscripted and scripted developments at advance stage.
• STV Radio progressing to plan with licence granted by Ofcom, presenter line up announced, and first advertising partner secured.

Dividend

• Given the uncertain trading environment, the Board is not proposing an interim dividend and will continue to review the position and provide a further update at the full year results.

Rufus Radcliffe, Chief Executive, commented:

“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. These steps are necessary to strengthen our financial resilience and position STV for long-term growth.

“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.”

There will be a presentation for analysts today, 25 September 2025, at 12.30pm, via Zoom.  Should you wish to attend the presentation, please contact Angela Wilson, angela.wilson@stv.tv or telephone 0141 300 3000.