Corrects Key Details table to show Pretax Loss was GBP 5.9 mln, not GBP 12.60 mln; clarifies nature of profit in headline
Overview
UK broadcaster and content producer's 2025 revenue fell 6% but beat analyst expectations
Adjusted operating profit dropped 44% but was slightly above analyst consensus
Company suspended dividend for 2025 to preserve liquidity amid margin and debt pressures
Outlook
STV Group expects Q1 2026 total advertising revenue to be down about 5%
Company anticipates FIFA Men's World Cup to drive advertising revenue in Q2 2026
STV Group plans full roll-out of new advertiser product innovation in H2 2026
Result Drivers
ADVERTISING WEAKNESS - Co said total advertising revenue fell 10%, with national linear advertising down 16%, reflecting a weak UK advertising market
STUDIOS MARGIN PRESSURE - Studios division saw lower new format sales and margin pressure from commissioners, contributing to profit decline
COST SAVINGS - Management implemented restructuring and cost-saving actions, including headcount reduction, to deliver £8m in annualised savings by end FY26
Company press release: ID:nRSQ8715Wa
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
GBP 176.90 mln
GBP 171.69 mln (5 Analysts)
FY Adjusted Operating Profit
Beat
GBP 11.60 mln
GBP 11.35 mln (3 Analysts)
FY Adjusted Pretax Profit
Miss
GBP 6.70 mln
GBP 7.07 mln (5 Analysts)
FY Basic EPS
-GBP 0.11
FY Net Debt
GBP 45.30 mln
FY Operating Profit
GBP 3.80 mln
FY Pretax Profit
-GBP 5.9 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for STV Group PLC is GBP135.00, about 26.2% above its March 16 closing price of GBP107.00
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)