STV Group cuts dividend as profits slide but bets on streaming, audio and studios growth

The latest announcement is out from STV Group plc ( (GB:STVG) ).

STV Group reported 2025 results in line with guidance but showing pressure from weak UK advertising markets, as group revenue fell 6% to £176.9m and adjusted operating profit dropped 44% to £11.6m, with both its broadcasting and studios divisions seeing lower margins. The company swung to a £4m loss, net debt rose to £45.3m, and the board scrapped the final dividend to preserve cash, while implementing cost-saving measures expected to deliver £8m in annualised savings by the end of 2026.

Despite the tougher backdrop, STV strengthened its strategic position by launching an Audio division including STV Radio, growing STV Player viewing by 9% to a record 75m hours, and maintaining its status as the leading commercial TV and streaming destination in Scotland. STV Studios delivered resilient revenues with a strong slate of returning series and new commissions for BBC One, Channel 4, Sky, Netflix and Apple TV, and management highlighted upcoming advertiser product innovations, major drama deliveries and the 2026 FIFA Men’s World Cup as reasons for optimism in improving performance while maintaining tight cost discipline.

The group’s focus on cash and leverage management kept net debt within guidance, with leverage at 2.5 times and interest cover comfortably above covenant levels, and it secured flexibility on pension contributions. While near-term advertising conditions remain subdued, with first-quarter 2026 total advertising revenue expected to decline around 5%, growth in video-on-demand revenue, the ramp-up of STV Radio, and a £33m forward production orderbook suggest a platform for longer-term growth once market conditions stabilise.

The most recent analyst rating on (GB:STVG) stock is a Hold with a £121.00 price target. To see the full list of analyst forecasts on STV Group plc stock, see the GB:STVG Stock Forecast page.

Spark’s Take on STVG Stock

According to Spark, TipRanks’ AI Analyst, STVG is a Neutral.

The score is held back primarily by financial risk from persistent negative equity and rising debt despite the 2024 earnings recovery and positive cash flow. Valuation is a clear positive (low P/E and high dividend yield), while technicals are broadly neutral with mixed moving-average signals. Corporate updates are modestly supportive but secondary.

To see Spark’s full report on STVG stock, click here.

More about STV Group plc

STV Group plc is a Scottish media company focused on broadcasting, streaming and content production, with a particular emphasis on serving audiences in Scotland. Its operations span the STV broadcast channel, the STV Player streaming service, the newly launched STV Radio audio offering, and STV Studios, which produces scripted and unscripted television for UK broadcasters and global streaming platforms. The group monetises its audience reach primarily through television, digital and now audio advertising, alongside programme sales and secondary rights revenues in domestic and international markets. Management is increasingly positioning the business as a multi-platform audience company, combining traditional linear TV with video-on-demand and audio to appeal to advertisers seeking reach and targeted engagement.

Average Trading Volume: 78,087

Technical Sentiment Signal: Sell

Current Market Cap: £49.99M

Find detailed analytics on STVG stock on TipRanks’ Stock Analysis page.