Criminal Record producer STV Studios has been hit by “significant commissioning market deterioration” over the past few months and has revised down its financials.
Pointing to the “UK macroeconomic backdrop [having] worsened,” STV Studios owner STV said recent unscripted projects in advanced development have not been greenlit and some commissions have been delayed to 2026. The group was delivering a trading update in advance of its half-year results.
The production arm’s revised full-year revenue outlook is now between £75M ($100.6M) and £85M at an adjusted operating margin of around 4% as “lower activity volumes impact fixed overhead recovery.” STV has previously spoken of a desire to double STV Studios profits to £140M by the end of 2026 with a 10% margin, which it said it was “on track to deliver” last year.
STV stressed that unscripted is the problem. Scripted labels “remain strong and we are currently working on projects for Netflix, Apple, Sky and the BBC,” said the Scottish entertainment outfit. “There is no change to our expectations of their financial performance this year,” it added. STV Studios makes the likes of Criminal Record for Apple TV+, Blue Lights for the BBC, Netflix’s upcoming The Witness and Sky’s Amadeus. On the unscripted side it produces ITV’s The Fortune Hotel and the BBC’s Bridge of Lies.
“STV Studios is developing an international business, but most customers remain UK-based and so the division has been disproportionately impacted by the recent slowdown in the domestic market,” the group added.
Overall, STV, which includes a channels and digital business, revised group revenue down for the full year to be in a range from £165m to £180m at an adjusted operating margin of around 7%, with £10m of the group revenue range driven by updated studios guidance. It made £188M last year.
Incremental cost savings of £750,000 have been identified for this year, bringing the full-year 2025 target to £2.5m. “We continue to assess the cost base in its entirety and expect to provide an update on further initiatives at our interim results, with further cost savings expected to be realised in FY26,” added STV.
CEO Rufus Radcliffe said the “deteriorating macroeconomic backdrop continues to lower business confidence impacting both markets in which we operate.”
“We are proactively responding to market conditions through a combination of investing in targeted future growth initiatives aligned with our long-term strategy and identifying efficiency and cost saving opportunities across the business,” he added. “There continues to be strong long-term growth potential within our business despite the short-term challenges, and we remain laser focused on delivering on the strategic plan we outlined earlier this year.”
