Scottish media company STV has sharply revised its sales and profit forecasts for 2025, warning that both figures are set to fall “materially below” expectations as the company grapples with “deteriorating” economic conditions impacting advertising revenue and stalling television projects. The company’s shares fell as much as 25% following the news, hitting a 12-year low.
Chief executive Rufus Radcliffe pointed directly to the challenging climate. He commented:
“The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate. STV is proactively responding to market conditions and there continues to be strong long-term growth potential despite the short-term challenges.”
For the full year 2025, STV now expects revenues in the range of £165 million to £180 million, down from £188 million in 2024, with an adjusted operating margin of about 7%. This revision reflects sharp declines across both the broadcaster’s Audience division, which runs the commercial STV channel and its streaming platform, and the Studios production arm.
Advertising revenue – traditionally STV’s “lion’s share” – has been hit especially hard. The company forecasts advertising income to fall 8% in the third quarter, including a dramatic 20% drop in July. This is attributed to both the tough market and a spike in viewership during last year’s men’s Euro football tournament, which inflated prior comparables.
Television project delays compound the pressure. The company said: “STV Studios’ delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of the first half and into the second half of the year.” Some television commissions have failed to get approval, with others “being delayed to 2026”.
The forward order book for Studios has dropped to £54 million, down from £66 million at the end of April.
Despite these setbacks, STV said its scripted divisions remain strong, with ongoing projects for Netflix, Apple, Sky, and the BBC. Radcliffe noted production had finished on high-profile dramas, including Amadeus for Sky and a third series of Blue Lights for the BBC, which he described as offering some “stability within the scripted segment” during domestic turbulence.
In response to the downturn, STV has ramped up cost-cutting plans, targeting £2.5 million of savings for 2025 and promising more details in September’s interim results announcement.
