STV Group Plc (LSE:STVG) shares dropped around 24% after it lowered its full‑year 2025 revenue and profit expectations, citing weaker advertising and commissioning conditions.
The Glasgow‑based broadcaster now forecasts group revenue of £165 million to £180 million, with adjusted operating margin at around 7%, including £10 million from its Studios segment.
STV highlighted that deterioration in commissioning and advertising markets in late H1 and into the second half led to the downgrade.
Advertising revenue in the second quarter fell around.17%, driving overall total advertising revenue (TAR) down 10% year‑on‑year for the first half. STV now expects third-quarter TAR down around 8%, with July likely down 20%.
August and September are expected to be broadly flat.
“The deteriorating macroeconomic backdrop continues to lower business confidence, impacting both markets in which we operate," said chief executive Rufus Radcliffe.
STV has identified additional cost savings of £750,000 for 2025, bringing its total cost‑reduction target to £2.5 million. Meanwhile, the group’s core net debt stood at £30 million at end‑June, up from £29 million at end‑December.
Production financing was reduced from £10 million to £5 million during H1.
Rufus Radcliffe added: "The group remains committed to strategic initiatives, including merging Broadcast and Digital into a new Audience division and launching a new radio station.
He also noted progress at STV Studios, with completed production on titles such as Amadeus for Sky and Blue Lights series three for BBC One.
In London, STV shares were down 23.56% changing hands at 146p.