STV Group plc has reported performance in line with market expectations “despite ongoing weakness in the linear TV advertising and commissioning markets” in its latest trading update, published today.
STV’s Studios division continues to trade well, winning commissions despite constrained budgets and delivering for our customers in a continued inflationary environment. Its forward orderbook sits at £92m at the end of October, with the division having delivered revenue of £24m and won commissions with a value of £15m since July.
Following confirmation of multiple commissions in Q3, including a second series of global drama, Criminal Record (pictured), for Apple TV+, STV Studios labels have also secured further orders in Q4 to date.
These include two original new formats for label Crackit TV – Crime Scene Cleaners (10 x 60”) for Channel 4 and Hunting Britain’s Bedroom Predators (3 x 90”) for Channel 5. Both series will be delivered in 2025.
Q3 total advertising revenue (TAR), before commission, was up five per cent, stronger than guided, although Q4 TAR year-on-year performance is impacted by strong comparators including the Rugby World Cup, and so is expected to be down around 10%.
TAR before commission is expected to be up around 2-3% for the full year.
Following the success of Brookside and Disney drama titles, STV Player continues to acquire key content and is now the only place where UK viewers can stream Irish police soap drama Red Rock, from start to finish, for free. Since its launch in mid-September, Red Rock has delivered 2m hours of viewing and is currently the best performing title on STV Player this year, after the soaps.
There continues to be a strong focus on cost control across the business. STV’s three-year cost savings plan is on course to deliver at least £1.5m of savings in 2024 and hit the target £5m annual run rate by the end of 2026, as previously guided.
Recently appointed STV Chief Executive Rufus Radcliffe said: “I joined STV on 1 November and have been very impressed by its strong foundations and prospects for future growth. I’ve been struck by the creativity, dynamism and commitment of the team and I look forward to working closely with them to build on recent successes.
“There’s no doubt that we continue to operate against a challenging advertising and commissioning backdrop, and we will continue to take action to mitigate against that where possible.
“The acquisition strategy in STV Studios is helping us to deliver in a tough market, with new commissions secured for original formats since our interim results.
“We expect the full year TAR to be up 2-3%, boosted by the Euros earlier this year. The winter schedule brings the return of entertainment juggernaut, I’m A Celebrity Get Me Out Of Here, and The 1% Club. And looking further ahead, we have a strong drama offering at the start of 2025 on STV and STV Player.”
