- Glasgow firm has bought stakes in several production companies
Scottish media company STV Group more than doubled its profits last year after seeing growth in its production arm and scoring an advertising bump from Euro 2024.
The broadcaster and producer, which runs Scotland’s popular TV channel STV, saw operating profits soar by 106 per cent to £13.2million in 2024, while its total profits increased by 147 per cent to £13.1million.
Total turnover rose by 12 per cent to £84.1million, driven primarily by takeover activity in its production business, STV Studios.
This included the purchase of a majority stake in Belfast-based Two Cities.
The Northern Irish production firm contributed £31.5million of revenues, boosted by the upcoming Sky miniseries Amadeus and the popularity of BBC police drama Blue Lights.
STV also increased its holdings in unscripted specialists Tuesday’s Child and Crackit Productions, having first taken a stake in them during the summer of 2023 when it bought Greenbird Media.
Stars: STV Group produces the Stephen Mangan-hosted game show The Fortune Hotel
It said the studios segment had a ‘good year… against a very challenging market backdrop,’ winning 51 new commissions or recommissions.
The firm’s commissions included The Witness, its first Netflix show, and a second series of AppleTV+ crime thriller Criminal Record, starring Peter Capaldi, and Stephen Mangan-hosted game show The Fortune Hotel.
Consequently, STV’s studios revenue climbed by 26 per cent to £84.1million, while pre-commission advertising sales expanded by 5 per cent.
Despite Scotland not making it past the tournament’s group stage, the company said Euro 2024 provided a significant uplift in ad revenues.
It was the most-watched sporting event for the company’s on-demand video service, STV Player.
Total streams were 61 per cent higher on the previous tournament, with England’s 2-1 semi-final victory over the Netherlands generating a record 617,000 streams across the game.
However, STV noted that ad sales suffered amid a ‘more difficult trading environment’ due to uncertainty caused by the UK General Election and Autumn Budget.
Rufus Radcliffe, who became the firm’s chief executive last November, said: ‘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.’
Radcliffe previously spent 13 years at ITV, where he held various positions, including chief marketing officer and managing director of streaming, interactive and data.
In the latter job, he led the strategic development and launch of the streaming service ITVX.
Radcliffe also worked at Channel 4 for 11 years as controller of marketing.
STV Group shares were 4.75 per cent lower at 170.5p on Tuesday morning, meaning they have approximately halved over the past five years.
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