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Yahoo
5 hours ago
- Business
- Yahoo
Scottish TV in crisis as demand collapses amid economic gloom
Scottish TV has been plunged into crisis as economic gloom hits advertising revenues and demand for new shows. Scottish Television (STV), which holds the Channel 3 licence in Scotland and is the country's largest commercial broadcaster, has warned that its revenues and profits would be 'materially' below expectations this year. Shares in the broadcaster plunged by as much as a third to their lowest level in more than 12 years in response to the update, pushing its market value below £90m. ITV, which licences many of its programmes to the Scottish channel, was also down 2pc. STV suffered a 10pc drop in advertising revenue in the first six months of 2025, which it said was in line with expectations following strong trading in the same period last year during the Euros football tournament. But bosses warned the market had since deteriorated further, with ad revenues plunging by a fifth in July. In addition to the advertising downturn, STV warned of a significant slowdown in its production division, which is the largest in Scotland and is behind shows such as the BBC's Blue Lights and upcoming Sky drama Amadeus. Studio businesses are considered a key area of growth for broadcasters as they grapple with a decline in traditional TV viewing. But rising costs and tough competition from streaming rivals result in many channels having to cut back on programming spend, leading to fewer commissions. ITV last week said it was slashing its programming spending as part of a wider cost-cutting strategy, while Channel 4 is also investing significantly less in making TV shows. Focus on Britain STV said that while it is working on projects for US streaming giants including Netflix and Apple, it remains primarily UK-focused, meaning it has been 'disproportionately' hit by a drying up of demand in the domestic market. STV forecasts production revenues of between £75m and £85m for the full year, well behind its targets of £200m by the end of the decade. Overall, STV said it was lowering its full-year revenue forecasts to between £165m and £180m with a profit margin of around 7pc. Richard Bernstein, the head of fund manager Crystal Amber, which was previously the largest shareholder in STV, described the profit warning as 'vicious'. He said: 'We've been tracking the company and saw today's warning as inevitable: it was over a year since its last new studio commission, we think the worst is yet to come.' In May, STV announced that it would combine its traditional TV and streaming businesses into a single division, aiming to streamline the company for the digital age. It also announced plans to launch a new Scotland-focused commercial radio station while doubling revenues in its studios unit. Bosses said they were ramping up cost-cutting plans with a further £750,000 in savings identified, bringing the company's total target for the year to £2.5m. Further cost-cutting is expected next year. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
The Herald Scotland
7 hours ago
- Business
- The Herald Scotland
Shares plunge in Glasgow-based STV amid profit warning
STV said its expectations for the third quarter are 'lower than anticipated due to the recent further deterioration in the advertising market'. Total advertising revenue for quarter three is now expected to be down by around 8% with July down about 20% against tough comparisons with last year when the final games of Euro 2024 took place. August and September are forecast to be 'broadly flat'. While advertising has come under pressure, productions arm STV Studios saw a 'significant' deterioration in the commissioning market late in the first half and early in the second half of the year. STV said the worsening conditions had 'impacted our unscripted labels with some projects in advanced development not being green-lit and some commissions being delated to 2026'. Chief executive Rufus Radcliffe said: 'The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate. 'We're making good progress in combining and streamlining our broadcast and digital businesses into a new audience division, and launch plans for the creation of our radio station are going well, with key appointments made and infrastructure plans forging ahead. 'STV Studios delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of H1 and into the second half of the year. However, in addition to winning new and repeat business in H1, we have completed production on key titles with international appeal, including high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One, with the second series of The Fortune Hotel airing on ITV and STV this summer - and our development pipeline is strong. Read more: 'We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business. 'There continues to be strong long-term growth potential within our business despite the short-term challenges, and we remain laser-focused on delivering on the strategic plan we outlined earlier this year." The update came shortly after Mr Radcliffe, who succeeded Simon Pitts as chief executive in November, set out a refreshed strategy for the group in May, under which it will target an operating profit of between £30 million and £35m by 2030. The strategy includes the launch of a new mainstream music radio station aimed at 35-54 year olds as part of a blueprint driven by 'two engines': a new audience division combining the company's broadcast and digital units, and STV Studios. As it launched the new strategy in May, STV warned that it expected total advertising revenue to fall by 18% in the second quarter compared with the same period the year before, when it benefited from the men's Euro 2024 international football championships. Total advertising revenue for the second was expected to be down 1% year-on-year. Further to Monday's update, group revenue at STV is now expected to be in a range from £165 million to £180m at an adjusted operating margin of around 7%, with £10m of the revenue range driven by updated guidance for STV Studios. Incremental cost savings of £750,000 have been identified, bringing the full-year target to £2.5m. The company said: 'We continue to assess the cost base in its entirety and expect to provide an update on further initiatives at our interim results, with further cost savings expected to be realised in FY26.' Shares closed down 24%, or 46p, at 145p.
South Wales Argus
11 hours ago
- Business
- South Wales Argus
STV warns over profits as advertising market slumps and TV projects delayed
Shares in the London-listed business plunged by about a quarter on Monday morning following the update. STV said it was now expecting full-year revenue and adjusted operating profit to be 'materially below' a consensus of analysts. Revenues are predicted to range between £165 million and £180 million for 2025. The company said it was now targeting £2.5 million worth of cost savings this year – higher than the £1.7 million outlined in March – having launched a significant savings programme last year, including across its broadcast operations. STV blamed worsening conditions in the commissioning and advertising markets in recent months for the profit and sales downgrade. Advertising revenues for the period between July and September is forecast to decline by 8%, lower than previously expected, driven by a sharp 20% drop in July, it told investors. The year-on-year decline is set to be impacted by particularly strong sales this time last year, due to the men's Euro football tournament being broadcast on TV. It follows a 10% fall in advertising revenues over the first half of 2025. A number of businesses, including WPP and S4 Capital, have flagged a worsening advertising market as more challenging economic conditions prompt clients to reign in marketing spending. Furthermore, STV warned the uncertainty was causing significant deterioration in the commissioning market. It said projects within its unscripted labels were being impacted with some in advanced development not getting the green light, and others being delayed into 2026. Nevertheless, it highlighted strong progress within its scripted labels with current projects including for Netflix, Apple, Sky and the BBC. Rufus Radcliffe, STV's chief executive, said: 'The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate. 'STV Studios' delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of H1 (the first half of 2025) and into the second half of the year.' But he said production had finished on 'key titles with international appeal, including high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One'. 'We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business,' Mr Radcliffe added.
Leader Live
11 hours ago
- Business
- Leader Live
STV warns over profits as advertising market slumps and TV projects delayed
Shares in the London-listed business plunged by about a quarter on Monday morning following the update. STV said it was now expecting full-year revenue and adjusted operating profit to be 'materially below' a consensus of analysts. Revenues are predicted to range between £165 million and £180 million for 2025. The company said it was now targeting £2.5 million worth of cost savings this year – higher than the £1.7 million outlined in March – having launched a significant savings programme last year, including across its broadcast operations. STV blamed worsening conditions in the commissioning and advertising markets in recent months for the profit and sales downgrade. Advertising revenues for the period between July and September is forecast to decline by 8%, lower than previously expected, driven by a sharp 20% drop in July, it told investors. The year-on-year decline is set to be impacted by particularly strong sales this time last year, due to the men's Euro football tournament being broadcast on TV. It follows a 10% fall in advertising revenues over the first half of 2025. A number of businesses, including WPP and S4 Capital, have flagged a worsening advertising market as more challenging economic conditions prompt clients to reign in marketing spending. Furthermore, STV warned the uncertainty was causing significant deterioration in the commissioning market. It said projects within its unscripted labels were being impacted with some in advanced development not getting the green light, and others being delayed into 2026. Nevertheless, it highlighted strong progress within its scripted labels with current projects including for Netflix, Apple, Sky and the BBC. Rufus Radcliffe, STV's chief executive, said: 'The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate. 'STV Studios' delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of H1 (the first half of 2025) and into the second half of the year.' But he said production had finished on 'key titles with international appeal, including high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One'. 'We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business,' Mr Radcliffe added.
South Wales Guardian
11 hours ago
- Business
- South Wales Guardian
STV warns over profits as advertising market slumps and TV projects delayed
Shares in the London-listed business plunged by about a quarter on Monday morning following the update. STV said it was now expecting full-year revenue and adjusted operating profit to be 'materially below' a consensus of analysts. Revenues are predicted to range between £165 million and £180 million for 2025. The company said it was now targeting £2.5 million worth of cost savings this year – higher than the £1.7 million outlined in March – having launched a significant savings programme last year, including across its broadcast operations. STV blamed worsening conditions in the commissioning and advertising markets in recent months for the profit and sales downgrade. Advertising revenues for the period between July and September is forecast to decline by 8%, lower than previously expected, driven by a sharp 20% drop in July, it told investors. The year-on-year decline is set to be impacted by particularly strong sales this time last year, due to the men's Euro football tournament being broadcast on TV. It follows a 10% fall in advertising revenues over the first half of 2025. A number of businesses, including WPP and S4 Capital, have flagged a worsening advertising market as more challenging economic conditions prompt clients to reign in marketing spending. Furthermore, STV warned the uncertainty was causing significant deterioration in the commissioning market. It said projects within its unscripted labels were being impacted with some in advanced development not getting the green light, and others being delayed into 2026. Nevertheless, it highlighted strong progress within its scripted labels with current projects including for Netflix, Apple, Sky and the BBC. Rufus Radcliffe, STV's chief executive, said: 'The deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate. 'STV Studios' delivery schedule for the remainder of 2025 has been impacted by the UK commissioning market, which has further weakened at the end of H1 (the first half of 2025) and into the second half of the year.' But he said production had finished on 'key titles with international appeal, including high-end drama Amadeus for Sky and a third series of Blue Lights for BBC One'. 'We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business,' Mr Radcliffe added.
