STV benefited from its strong commissioning record, outperforming group revenue and helping to diversity the group.

New chief executive Rufus Radcliffe is to outline a refreshed strategy in May that will build on the group’s strengths.

“I’ve been with STV for four months and it’s clear that the foundations of the business are strong,” he said in a statement with full-year results.

“STV is a much more balanced group following the scaling of our Studios and Digital businesses, with good growth potential.

“2024 was a good year for STV. We delivered a strong performance against a challenging economic backdrop, with results in line with expectations.  We are controlling those elements we can, in line with our strategy, and are very much on track to ensure that STV is in the best possible shape when the market recovers.

“We’re seeing continued growth in our Studios business, with 51 commissions won in 2024 for more customers than ever before.”

The Euros provided a welcome boost to viewing and advertising in H1 2024, winning a 48% audience share across the tournament, and delivering record audiences for live viewing on STV Player.

Mr Radclliffe added: “I’m working closely with the leadership team on a strategy refresh taking us to 2030.  This will build on the strengths of our existing strategy and take it to the next stage of development and growth.  I look forward to updating on this in May 2025.” 

Income from the Studios business rose 26% to £84.1 million, with an 18% rise in operating profit to £6.1m. Group revenue was 12% higher at £188m as the broadcaster also benefited from last year’s Euros football tournament.

Group adjusted operating profit was up 3% to £20.6m and statutory operating profit more than doubled to £13.2m

Profit before tax was £10.4m (2023: £nil) after charging finance costs of £7.6m (2023: £6.2m). Digital sales (before commission) were up 8% to £21.8m (net of commission -4%).

Total Advertising Revenue (TAR) was 5% higher before commission and STV-controlled advertising up 5%.

The group achieved copst savings of £1.9m against its target of £1.5m and is on track to deliver £5m p.a. by end FY26

The board proposes final dividend of 7.4p (full year 11.3p), in line with 2023.

Market reaction

Panmure Liberum said: “2024 revenues were ahead of expectations boosted by Studios continuing to scale while group profit was essentially in-line. This was achieved against the backdrop of a volatile Q4 ad market.

“Looking forward, Studios should continue to grow whilst ad guidance looks suitably macro-risk adjusted and not a surprise after the ITV update.

“Estimates fall but profit outlook is essentially stable. This is ahead of the new CEO strategy refresh (evolution rather than revolution) that is likely to see a focus on exploiting the STV Player platform further and support the scaling of the Studios operation.

“The shares have already moved to factor in the Trump uncertainty, and we adjust our TP based on these near-term prospects. Our focus now shifts to the strategy update and the further development of STV.”