The media group STV\u2019s shares fell sharply as it warned that a deterioration in the UK advertising and television commissioning markets meant it would miss profit targets.<\/p>\n
In an unscheduled trading update, the company said that full-year revenue and adjusted operating profit would be \u201cmaterially below consensus\u201d.<\/p>\n
Shares in STV Group fell 25 per cent to 138p at one stage, to a 12-year low. They were down 21.5 per cent in afternoon trading.<\/p>\n
STV operates the Channel 3 television licence in Scotland. It also has its own digital catch-up and streaming service with the STV Player and a production arm, STV Studios.<\/p>\n
The Glasgow company said it expected to book between \u00a3165 million and \u00a3180 million of revenue for the full-year. Analysts had previously pencilled in revenue of more than \u00a3190 million and profit of about \u00a318 million. This compares with revenue of \u00a3188 million and profit of \u00a313.1 million in 2024.<\/p>\n
Progressive Equity Research cut its profit forecast from \u00a318.5 million to \u00a311.2 million, with Panmure Liberum going from \u00a318.1 million to \u00a311.5 million.<\/p>\n
Total advertising revenue at STV was down 10 per cent in the first half of this year, which was in line with guidance.<\/p>\n
However, the third quarter is expected to result in an 8 per cent year-on-year decline, with revenue across the audience division expected to be between \u00a390 million and \u00a395 million.<\/p>\n
Alongside that, STV said that some of its shows in later stages of development had not been given final approval, while other commissions were being delayed until 2026.<\/p>\n
The unscripted division, which covers reality, quiz, entertainment and factual formats, has experienced the biggest disruption.<\/p>\n
In contrast, scripted drama has remained strong, with projects such as the third series of the BBC crime drama Blue Lights and Amadeus, a period piece for Sky looking at the life of Mozart, moving forward.<\/p>\n
Revenue from studios across this year is forecast to be between \u00a375 million and \u00a385 million, with the value of the forward order book now at \u00a354 million, compared with \u00a366 million in April.<\/p>\n
\u2022 British television is dying \u2014 and Gogglebox won\u2019t save it<\/b><\/a><\/p>\n