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On Tuesday, STV Group (LSE:STVG) reported strong first-half financial results, showcasing significant growth in both revenue and profit. The London-listed Scottish broadcaster experienced a 20% increase in total revenue, reaching £90.4 million, driven by robust performance across its Studios, Digital, and Broadcast divisions.
Adjusted operating profit surged by 33% to £10.6 million, reflecting the effectiveness of STV’s growth strategy despite ongoing market challenges. The Studios division was a key driver of this growth, with revenue rising 38% to £37.5 million, supported by a healthy forward order book of £101 million.
The Studios division benefited from strategic investments, including an increased stake in Glasgow-based unscripted formats creator Hello Halo. Additionally, the acquisition of additional stakes in five high-potential creative labels further advanced the portfolio strategy, while four other stakes were exited.
During the first half, STV secured 36 new program commissions, including major recommissions from Apple TV+, BBC, and ITV1. The Broadcast division saw a 12% increase in revenue, with adjusted operating profit rising by 47%, aided by an improving advertising market. Total advertising revenue grew by 13%, reflecting a recovery in the sector, and the positive trend is expected to continue into the third quarter.
The coverage of Euro 2024 significantly boosted audience engagement, solidifying STV’s position as the most-watched peak-time TV channel in Scotland. The Digital segment also performed strongly, with pre-commission sales increasing by 14% and VOD advertising revenue rising by 13%. The STV Player achieved a record first half, driven by Euro 2024, with online streams reaching 73 million. Partnerships with ITV and new content agreements with Disney further enhanced the platform's offerings.
Looking ahead, STV Group remains optimistic about its full-year performance, anticipating continued revenue growth and strong profitability from its Studios division. The company is on track with its cost savings plan, targeting £1.5 million in savings for 2024 and aiming for a run rate of £5 million annually by 2026.
The board has proposed an interim dividend of 3.9p per share, reflecting confidence in the company’s strategic direction and financial health. Chief Executive Officer Simon Pitts highlighted the successful transformation of STV into a digital-first media company, noting the strong progress made in 2024. The company’s strategic investments and record audience engagement position it well for future growth.
As of 0938 BST, shares in STV Group were slightly down at 262.96p.
