The group also announced that CEO Simon Pitts will step down in the next 12 months to start a new appointment in Q1 2025. The board has begun 

The operating profit slump was influenced by a £20.1 million decrease in higher-margin linear advertising revenue. Despite this setback, the company recorded a 22% increase in revenue, reaching £168.4m, compared to the previous year’s £137.8m. However, advertising revenue contracted by 12% to £97.3m.

The net debt for STV more than doubled from the previous year, soaring to £32.3m, reflecting the acquisition cost of Greenbird Media Group in July 2023. The profit for the fiscal year 2023 plummeted by 69%, settling at £5.3m.

The dividend per share remained steady at 11.3p, and STV maintained its position as Scotland’s most-watched peak-time TV channel for the fifth consecutive year.

In response to the financial challenges, STV announced a growth strategy aimed at doubling studio revenue to £140m, expanding digital revenues by 50%, and achieving an additional £5m per year in cost savings. Surprisingly, outgoing CEO Simon Pitts, who has been in the role since 2018, will oversee the ambitious targets before departing the company in the next year.

Mr Pitts said: “Despite the challenging commissioning environment, STV Studios had a standout 2023, propelled by fantastic dramas like Criminal Record for AppleTV+ and Screw for C4 and the transformative acquisition of Greenbird.

“Our overall financial performance was impacted by weak linear advertising and cost inflation, as expected and related to the challenging UK macro environment, although the start of 2024 has been more encouraging.

“With STV’s latest diversification targets fully achieved, now is the right time to plan a smooth and orderly succession. As such I have informed the board that I will step down as CEO over the next 12 months to take up a new appointment beginning in Q1 2025.”

The board has commenced a process to appoint a successor.

Paul Reynolds, STV board chairman, said: “Simon has been an outstanding leader of STV over the past six years. As the architect of our diversification strategy, he has successfully led the transformation of STV from a linear broadcaster into a resilient content creation and digital streaming business with an exciting future.

“On behalf of the board, I would like to thank Simon for his significant achievements to date and his ongoing commitment to implement the next phase of our growth strategy until he steps down over the next twelve months.”

Mr Pitts added: “I’d like to express my sincere thanks to Paul, former chair Margaret Ford and the rest of the board, as well as all my STV colleagues for their unstinting support, drive and creativity over 6 extremely enjoyable years.”