STV Group is bracing for further job cuts after the Glasgow-based broadcaster reported a first-half financial loss and saw advertising revenue tumble by double digits. The company, which holds the Scottish Television and Grampian Television licences, is now seeking £3 million in cost savings, including achieving £2.5m by next year.
Management has confirmed a comprehensive cost savings programme is being implemented to protect profitability and ensure greater balance sheet flexibility against a backdrop of deteriorating advertising and content commissioning markets. The aim is to prepare the business for growth when conditions improve.
The announcement follows STV’s July warning that profits would be lower than previously forecast, a move that led to a significant fall in its share price. At that time, the company said it would seek an additional £750,000 in savings.
Interim results for the six months to the end of June reveal total advertising revenues are down 10 per cent year-on-year to £45.6 million. Operating profit plunged 49 per cent to £3.3 million, while the group reported a post-tax loss of about £300,000 for the first half of 2025.
Chief executive Rufus Radcliffe 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. These steps are necessary to strengthen our financial resilience and position STV for long-term growth.”
Despite the challenging environment, Radcliffe pointed to positive developments, including the upcoming launch of STV Radio and record viewing figures for the STV Player. He also noted the commissioning of the drama Army of Shadows by Channel 4 from Two Cities.
Alasdair Young, media equity analyst at Shore Capital, described the most significant news as the detail on enhanced cost-saving measures and greater flexibility around pension contributions. He suggested a cautious outlook, with no dividend expected for the full year.
