**Summary of STV Group Full Year Results to 31 December 2025**
**Financial Performance**
**Revenue** £176.9 million, down 6% year-on-year, primarily due to a 10% decline in Total Advertising Revenue (TAR) to £89.3 million, driven by national linear advertising. Studios revenue remained resilient at £83.0 million, down 1%.
**Adjusted Operating Profit** £11.6 million, down 44%, with both divisions reporting a 35% decline. Adjusted operating margin fell to 6.6% from 11.0% in 2024.
**Statutory Operating Profit** £3.8 million, down 71% from 2024.
**Net Debt:** £45.3 millionat the lower end of guidancecompared to £38.7 million in 2024.
**Cost Savings** Management actions are expected to deliver annualised cost savings of £8 million by the end of FY26, with £4.1 million already achieved in FY24/FY25.
**Operational Highlights**
**STV Player** Achieved record consumption, up 9% to 75 million hours, with registered Daily Active Users up 10%.
**Audio Business** Successful launch of STV Radio, attracting new advertisers and audiences.
**Advertising Innovation** Strengthened advertising proposition with pause ads and STV ADapt, with new products planned for 2026.
**Studios** Delivered 37 new commissions and recommissions in 2025, including notable projects like *Blue Lights* (Series 3) and *The Witness* for Netflix. Forward production orderbook stands at £33 million.
**Strategic Progress**
**Audience Division** Maximising reach and engagement across broadcast, streaming, and audio platforms. STV and STV Player combined reach 75% of Scots monthly, outperforming competitors like Netflix and Amazon Prime in Scotland.
**Studios** Focus on high-quality, returnable IP with strong international appeal, supported by an expanded customer mix and disciplined portfolio management.
**Cost Discipline** Tight cost management remains a priority, with restructuring and cost-saving measures implemented to improve financial performance in 2026.
**Market Outlook**
**Advertising** Q1 2026 TAR is expected to decline by 5%, with national linear down 7% and regional linear down 11%. VOD revenue is expected to grow by 3%.
**Events** The FIFA Mens World Cup is expected to boost advertising revenue in Q2 2026.
**Studios** Forward orderbook of £33 million at the end of December 2025, with no cancellations notified.
**Dividend**
No final dividend proposed for 2025 to preserve financial flexibility and liquidity, given continued pressure on operating margins and the current debt profile.
**Management Commentary**
**Rufus Radcliffe, Chief Executive** Highlighted the challenging market conditions in 2025 but emphasized the groups operational discipline and strategic progress. He expressed optimism for 2026, citing major events, new advertiser products, and significant content deliveries for global streamers.
**Conclusion**
STV Groups 2025 results reflect a challenging year, with revenue and profit declines driven by macroeconomic pressures and a weak advertising market. However, the group has made strategic progress, particularly in its Audience division and Studios, and is focused on cost discipline and innovation to improve performance in 2026. The absence of a dividend reflects a cautious approach to financial management in a volatile market.
| Financial Metric | 2025 (£m) | 2024 (£m) | Change |
|---|---|---|---|
| Revenue | 176.9 | 188.0 | -6% |
| Adjusted Operating Profit | 11.6 | 20.6 | -44% |
| Operating Profit | 3.8 | 13.2 | -71% |
| (Loss)/Profit for the Year | (4.0) | 13.1 | -130% |
| Cash Generated by Operations | 15.5 | 17.7 | -12% |
| Net Debt | 45.3 | 38.7 | +17% |
Debt Comparison
| Debt Metric | 2025 (£m) | 2024 (£m) | Change |
|---|---|---|---|
| Net Debt | 45.3 | 38.7 | +6.6 |
| Leverage (x) | 2.5 | 1.5 | +67% |
| Interest Cover (x) | 6.1 | 8.5 | -28% |
Note: Net debt includes amounts drawn under non-recourse production financing facilities of £2.3m (2024: £9.9m)
**Key Observations:** * Revenue decreased by 6% year-on-year, primarily driven by a 10% decline in Total Advertising Revenue (TAR). * Adjusted operating profit declined by 44%, mainly due to lower TAR, reduced new format sales in Studios, and inflationary pressures. * Net debt increased by £6.6m, partly due to the loss for the year of £4m (2024: profit of £13.1m). * Leverage increased to 2.5x, while interest cover decreased to 6.1x, both still within covenant limits. This HTML code creates two tables comparing the financials and debt metrics year-on-year, highlighting the changes and trends in STV Group PLC's financial performance.