STV is banking on a World Cup advertising boost to offset a decline in underlying revenues as the broadcaster continues to grapple with challenging market conditions and the fallout from its controversial news service overhaul.
In a trading update issued ahead of its annual general meeting today, STV said total advertising revenue fell by 4% in the first quarter of 2026. While slightly better than guidance of a 5% decline, the broadcaster warned that weakness in the advertising market is expected to continue through the remainder of the year.
The company expects second-quarter advertising revenues to rise by around 10%, largely due to advertiser demand around the FIFA Men's World Cup, helping lift first-half advertising revenues by around 4%.
The update comes just days after Ofcom approved major changes to STV's regional news output, despite opposition from viewers, politicians, journalists and business groups across northern Scotland.
The regulator has approved plans allowing up to 70% of STV News at 6 content to be shared between northern and central Scotland, with programmes presented primarily from Glasgow. STV said the licence changes would secure the long-term sustainability of its news service.
In Friday's update, the broadcaster said: "Ofcom approval secured for changes to both STV's Public Service Media licences securing the future delivery of a financially sustainable news service."
STV chief executive Rufus Radcliffe said the group remained on track despite pressures facing both its broadcasting and production businesses.
The broadcaster's production arm, STV Studios, is expected to post an adjusted operating loss of around £3million during the first half of the year, reflecting what the company described as a subdued commissioning market.
However, the division recently secured its first unscripted commission for a major international streaming platform, with Primal Media producing The Mob for Disney-owned Hulu.
The company said its cost reduction programme remains on track to deliver annualised savings of £8million by the end of 2026.
STV Radio, which launched in January, was also highlighted as a growth area. Mr Radcliffe said the station had performed ahead of expectations, although the first independently measured audience figures from RAJAR will not be published until August.
FSTE100
The UK's flagship share index, the FTSE 100, was down six points at 10,342 shortly after opening this morning.
Brent crude oil futures were up 0.01%, sitting at $95.04 a barrel this morning.
Companies reporting
There are no FTSE 350 reporters today.