STV Group said the advertising and commissioning markets remained challenging though its new radio station had received a “positive response”.
In a trading update, the company made no reference to its planned closure of its northeast news operation.
However, it said it was “on track” to achieve is savings target. Actions announced in September to protect profitability will deliver a £2.5m cost reduction in 2026 as planned.
These savings are incremental to the previously announced target of £5m run rate by the end of 2026.
The company expects group revenue to be at the top of guidance of £165m-£180m, with adjusted operating profit in line with current consensus of £11.4m.
Total Advertising Revenue for the fourth quarter is expected to be down c.10% year on year, and 10% for the full year.
This reflects “the continued impact of the challenging macroeconomic climate on the advertising market. These market conditions have continued into early 2026.”
STV Studios closed the year with an order book of £33m (Aug-25: £40m) following continued delivery of programmes to commissioners in a sector “where activity remains subdued”. There have been no cancellations.
Net debt is expected to be towards the lower end of the guidance range of £45-50m.
STV Radio launched this month to an “early positive response from the advertising market and audiences.”
Rufus Radcliffe, chief executive of STV Group, said: “STV will deliver a full year 2025 in line with current expectations.
“The macro-uncertainty of H2 2025 has continued into early 2026 with subdued advertising and commissioning markets persisting, although the upcoming 2026 FIFA World Cup provides an important event for advertisers and viewers alike.
“We are on track to realise previously identified cost savings to protect profitability and provide balance sheet resilience.
“Our award-winning Studios team continues to feed a strong pipeline of new potential projects alongside delivery of returning series; and our new growth venture, STV Radio, is off to a promising start.
“We are also exploring the strategic options that are emerging given the rapidly evolving media landscape.”
Analysts at Cavendish said in a note this morning that STV’s valuation looks “compelling” and have set a price target of 180p, providing c.60% upside. It has initiated coverage with a Buy rating
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