STV Group reported H1 2026 interim results on September 8, 2026, revealing a significant disconnect between its audience and advertising businesses and a struggling Studios division that posted a £25.4m non-cash impairment charge.
Total revenue fell 27% to £66.1 million compared with H1 2025. Adjusted operating profit declined 12% to £5.9 million, though the adjusted operating margin expanded to 8.9% from 7.4% a year earlier. Adjusted earnings per share held steady at 7.1 pence. Shares fell 6.7% to $104.5 following the results.
Advertising revenue rose 5% to £48.1 million, buoyed by a 13% increase in digital revenue and a 6% rise in national ad sales. Second-quarter national advertising surged 16% year-over-year after a weak first quarter that saw a 3% decline. Chief executive Rufus Radcliffe credited the growth to the successful launch of STV Radio, higher-margin ad revenue, the FIFA World Cup, and cost savings that partially offset the sharp drop in Studios activity.
Studios revenue plummeted 63% to £15.5 million as commissioning slowdowns persisted. The division recorded an operating loss of £3.2 million and a total impairment charge of £25.4 million, comprising £16.9 million in goodwill, £2.5 million in intangibles and £6.0 million in inventory. Radcliffe said management was "positioning the business not for a return to the market of the past, but for the opportunities we see in the market tomorrow," citing prolonged commissioning declines and a more cautious outlook on future cash flows.
The Audience division posted adjusted operating profit of £11.1 million, up 21% year-over-year. STV Player logged its strongest-ever first half with 40.4 million streaming hours, up 9%, and 1.6 million registered active users, a 23% increase. FIFA World Cup coverage generated 3.0 million total reach across 46 matches and 39 million viewing hours; Norway vs. England became the most-streamed match ever on the platform with 653,000 views.
STV Radio reached 139,000 weekly listeners and 1.3 million listening hours, ranking among Scotland's top ten commercial stations. Monthly reach across all propositions expanded to 77% of Scottish adults from 71%, with under-45 reach rising to 69% from 59%. STV News digital views grew 14% year-over-year, and Meta-platform content averaged 38.7 million monthly views.
Net debt fell to £42.9 million from £45.3 million at year-end 2025, with core corporate debt at £40.9 million as of June 30. Leverage stood at 2.3x against a covenant maximum of 3.75x; interest cover was 5.5x versus a 4x minimum. The company expects year-end net debt in the £40–45 million range. The pension deficit narrowed to £37.6 million from £39.2 million at year-end 2025, and no further contributions are required in H2 2026 after £1 million paid in H1.
Cost savings of £1.5 million have been delivered from a restructuring plan announced in H2 2025. Production orderbook stood at £36 million in contracted activity as of June, up from £33 million at year-end.
Looking ahead, the company guided that total advertising revenue in Q3 2026 will decline by approximately 5%. CFO Lindsay Nuttall cautioned that regional advertising conditions have softened following years of outperformance, adding that "a wider recovery is not yet with us."
