STV shares plunge 25% as profits warning hits broadcaster

Scottish media firm STV Group has issued a stark warning about its financial prospects as deteriorating economic conditions hammer advertising revenues and delay television projects. The company's shares plummeted by around 25% on Monday morning following the grim update.

STV said it now expects full-year revenue and adjusted operating profit to fall "materially below" analyst forecasts. The broadcaster predicts revenues will range between £165 million and £180 million for 2025.

Cost-cutting measures intensified

The company has ramped up its cost-saving targets to £2.5 million this year, up from the £1.7 million outlined in March. This follows a significant savings programme launched last year that included cuts across its broadcast operations.

STV blamed worsening conditions in both the commissioning and advertising markets for the profit and sales downgrade. Advertising revenues between July and September are forecast to decline by 8%, driven by a sharp 20% drop in July alone.

Advertising market struggles

The year-on-year decline has been worsened by particularly strong sales during the same period last year, when the men's Euro football tournament boosted viewing figures. This follows a 10% fall in advertising revenues over the first half of 2025.

Several major businesses, including WPP and S4 Capital, have flagged similar challenges as economic uncertainty prompts clients to slash marketing spending. The advertising downturn reflects broader concerns about business confidence across the UK economy.

TV projects face delays

STV warned that uncertainty is causing significant deterioration in the commissioning market. Projects within its unscripted labels are being hit particularly hard, with some advanced developments failing to get the green light and others being pushed back into 2026.

However, the company highlighted strong progress within its scripted divisions. Current projects include work for major platforms such as Netflix, Apple, Sky and the BBC.

Chief executive responds

Rufus Radcliffe, STV's chief executive, said the deteriorating economic backdrop continues to lower business confidence in both markets where the company operates. He noted that the UK commissioning market had further weakened at the end of the first half of 2025 and into the second half of the year.

Despite the challenges, Radcliffe said production had finished on key titles with international appeal. These include high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One.

The chief executive added that STV is responding proactively to market conditions through targeted growth initiatives and efficiency measures across the business. The company remains focused on its long-term strategy despite the current headwinds.

(PA/London) Note: This article has been edited with the help of Artificial Intelligence.