The Scottish broadcaster and producer announced that its full-year group revenue is now expected to be between £165 million and £180m, with an adjusted operating margin of approximately 7%. The company has identified immediate cost savings of £750,000 and anticipates further efficiencies in the next financial year.

The warning follows a significant downturn in the UK commissioning market, which has disproportionately affected its production arm, STV Studios. The division has seen some projects delayed until 2026 or not green-lit at all. Consequently, STV Studios has revised its revenue forecast to between £75m and £85m, down from £84m in 2024. Its forward order book has fallen to £54m from £66m at the end of April.

In its audience division, advertising revenue for the third quarter is forecast to be down by around 8%, with July expected to fall by approximately 20% compared to a period last year that was boosted by the men’s Euro 2024 football tournament.

Despite the headwinds, STV stressed that its scripted drama labels remain strong, with projects for Netflix, Apple, and Sky proceeding as planned. Chief executive Rufus Radcliffe acknowledged the challenging “macroeconomic backdrop” but confirmed the company’s long-term strategy remains on track, including the launch of a new radio station and the streamlining of its broadcast and digital arms into a single Audience division.