Despite a challenging market, STV continues to outperform expectations.
- STV Studios boasts a £92 million forward orderbook as of October.
- Q3 saw STV deliver £24m in revenue and £15m worth of new commissions.
- Advertising revenues show resilience, with a 2-3% increase anticipated for the year.
- STV Player garners success with high-performing titles and strategic content acquisition.
STV Group plc has managed to deliver results that align with market expectations this fiscal period. This achievement comes in the face of persistent challenges in the linear TV advertising and commissioning markets.
STV Studios, a division of the group, is thriving with a strong pipeline of projects. As of the end of October, its forward orderbook reached an impressive £92 million. In the months since July, they have secured £15 million worth of new commissions and delivered £24 million in revenue. This includes a confirmed second series of the drama ‘Criminal Record’ for Apple TV+, continuing its momentum into the final quarter with fresh orders such as ‘Crime Scene Cleaners’ for Channel 4 and ‘Hunting Britain’s Bedroom Predators’ for Channel 5, both set for 2025 release.
Advertising revenue is another area where STV shows strength. While the third quarter advertising revenue increased by five percent, the outlook for the fourth quarter reflects some challenges, largely due to strong comparators like the Rugby World Cup. However, the overall outlook for the full year remains positive, with total advertising revenue expected to increase by around 2-3%.
In terms of broadcasting, STV Player is making strides with strategic content acquisitions. It has become the exclusive streaming platform for the Irish drama ‘Red Rock’ in the UK, accumulating over two million hours of viewing since its launch. This makes it the top-performing title on the platform this year after the soap category.
STV’s strategic focus on cost management is evident as it aims for £1.5 million in savings for the coming year, moving towards a targeted £5 million annual run rate by 2026. Newly appointed Chief Executive Rufus Radcliffe acknowledges the challenges faced but remains optimistic about the company’s strong foundation and growth prospects. His focus is on enhancing their acquisition strategy to secure new commissions amid a tough market landscape, reinforcing the company’s resilience and adaptability.
STV demonstrates robust performance and strategic acumen, navigating market challenges with foresight and efficiency.
