The anticipated profit is projected to be around £20 million, a figure impacted by the weakening national TV advertising market and a slowdown in studio commissioning. However, this comes in contrast to the company’s reported 30% revenue increase over the first nine months of the year, a result of STV’s diversification strategy and digital growth.

The Glasgow-based media conglomerate has seen its total revenue surge due to its strategic shift, with significant growth in digital and studio operations. Despite the softer linear advertising performance, STV’s Video on Demand (VOD) service and regional advertising have shown resilience, the latter buoyed by the STV Growth Fund’s effectiveness.

STV’s studios segment, in particular, has shown robust performance with operating profits expected to surpass £5m. This is attributed to a series of strategic moves, including the acquisition of Greenbird Media, which has expanded STV Studios’ presence across the UK and nearly tripled its revenue projections for the year.

Although the group’s Total Advertising Revenue (TAR) dipped by 9% for the first nine months, the third quarter showed signs of recovery, aided by a strong programming schedule. The acquisition of Greenbird, at an initial cash consideration of £21.4m, has notably increased STV Studios’ production slate and bolstered its position as a significant player in the UK production market.

STV Group’s revenue for the first nine months of 2023 stood at £114m, marking a 32% increase over the previous year, and a more substantial rise when factoring in the Greenbird acquisition. The momentum of STV Studios continued unabated, with a record number of series produced and a slew of new commissions, despite the broader global economic pressures.

Analysts have offered mixed reviews on STV’s performance, with some recognising the robust execution in scaling studios and growing the digital business amidst broader market challenges. STV remains confident in its growth prospects, with a strong content lineup and a clear strategy poised to capitalise on economic recovery.