Sparks

STV’s trading update highlights that Q3 total advertising revenue (TAR) was ahead of guidance at +5%, but Q4 faces a tough comparator, as it included the Rugby World Cup, and is likely to be down around 10%. This puts full-year expected performance in line with analyst estimates and guidance of +2–3%. The overall advertising market remains tough, particularly for traditional linear TV and is set to remain so until consumer confidence improves.

STV Studios is the bright spot, supported by the earlier acquisition strategy that has given the group a wider playbook offering. STV Studios had a forward order book of £92m at end-October, down from £101m at the half year as projects are delivered (£24m delivered, with new commissions worth £15m won). These new projects are for a broad range of customers, including Apple TV+, Channel 4 and Channel 5.

The previously announced cost-saving plan is delivering as expected, with £1.5m of savings anticipated in FY24 and on track for a run rate of £5m by end-FY26.

New CEO Rufus Radcliffe took over from Simon Pitts on 1 November. Rufus Radcliffe joined from ITV, where he was on the executive committee and was managing director of streaming, interactive and data. He also led the interactive business and the group-wide data strategy, which is experience that should prove valuable for STV.