Costs in focus as STV posts loss and ditches dividend – Daily Business

Rufus Radcliffe: adapting the business

STV fell to a loss in the last year as advertising revenue declined and it cancelled its final dividend.

The broadcaster said it remains on track to achieve £8 million in cost savings and its Studios revenue remains resilient as it continues to pick up commissions.

Its new radio station expects first audience figures in August and said the “reaction from the media, listeners and advertisers has been positive with good brand awareness”.

The company saw strong performance from STV Player, with consumption up 9% to 75m hours.

The loss before tax to the end of December was £5.9m (2024: profit of £10.4m) after charging finance costs of £8.8m (2024: £7.6m). After tax credits the loss for the year was £4m (2024: profit of £13.1m).

Group revenue was down 6% to £176.9m, driven by a 10% decrease in total advertising revenue to £89.3m, while Studios revenue remained resilient at £83m.

Adjusted operating profit fell 44% to £11.6m, with an adjusted operating margin of 6.6%, reflecting management actions to achieve its annualised cost savings by the end of the financial year. Group net debt increased to £45.3m from £38.7m in the prior year.

No final dividend has been proposed for 2025 (11.3p in 2024). Although the business continues to be cash generative, given continued pressure on operating margins and the current debt profile, the board said it is “prudent not to declare a dividend in respect of 2025, to preserve financial flexibility and liquidity as the business stabilises”.

It is the directors’ intention to return to paying a dividend “when it is prudent for the Group to do so”.

Rufus Radcliffe, chief executive, said: “Throughout a challenging 2025 for both of our key markets, we acted decisively to adapt the business to rapidly changing conditions, and have delivered results in line with latest guidance as well as making clear progress across our strategic pillars.

“We remain focused on improving financial performance in 2026 supported by tight cost discipline despite continued limited market visibility. Our new Audience division, bringing together broadcast, streaming and audio, is maximising reach and engagement, strengthening our advertising proposition and opening new commercial opportunities following the launch of STV Radio.

“STV Studios continues to deliver high‑quality, returnable IP with strong international appeal, supported by an expanded customer mix and disciplined portfolio management.

“Having taken decisive steps to re-engineer the group’s cost base in the period, this focus on tight cost discipline will remain a priority in 2026.

“We also believe 2026 offers reasons for optimism, including the Men’s Football World Cup, new advertiser product innovation, and major new scripted and unscripted deliveries for global streamers.

“We believe that the transforming media landscape will continue to offer opportunities for STV.”

Ofcom has delayed a decision on STV’s planned cutbacks to its operations at STV North until after the Scottish elections.

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