STV Group H1 2026 Revenue Falls 27% as Studios Slump Hits Stock

STV Group reported a 27% drop in first-half revenue to £66 million as a slower television commissioning market weighed on its studios division, sending its shares down 6.7% in trading following the update according to an earnings call transcript reported by Investing.com.

The contraction in top-line revenue contrasted with the previous period, driven by reduced commissioning activity that forced a substantial impairment charge in the broadcaster's production arm. Despite the studios slowdown, digital expansion and steady earnings-per-share metrics provided some offset.

"We successfully launched STV Radio and the growth in higher margin advertising revenue, the benefit of the FIFA World Cup, and cost savings helped offset the impact of significantly lower activity in STV Studios," said Rufus Radcliffe, Chief Executive, STV Group, in a transcript of the earnings call.

Financial Performance and Advertising Growth

While headline revenue contracted to £66 million, underlying profitability metrics showed varying resilience. Adjusted operating profit declined 12% to £5.9 million, while adjusted earnings held steady at 7.1 pence a share.

Broadcasting segments experienced positive momentum despite the broader corporate headwinds. Total advertising revenue rose 5% to £48 million, and digital revenue increased 13% to £12 million, supported by digital streaming initiatives and sporting events.

Studios Impairment and Commissioning Market

The primary driver of the revenue decline centered on STV Studios, where the company booked a £25 million impairment charge. This figure included £17 million of goodwill impairment, reflecting a prolonged slump in television commissioning across the broader media sector.

"The prolonged slowdown in commissioning led to a more cautious view of future cash flows," Radcliffe said regarding the studios write-down, noting the company is positioning the business to address the opportunities seen in the market.

Market Reaction and Forward Guidance

Following the earnings release, STV shares fell 6.7% to $104.5 from a previous close of $112. Looking ahead to the third quarter, management issued a cautious forecast, projecting that advertising revenue will fall about 5% compared to the prior-year period.