Scotland’s STV is undergoing a “comprehensive” cost savings program that will see development spend at STV Studios Entertainment and investment in Ex Rated producer Mighty Productions stop.
The news will see the exit of STV Studios Entertainment Creative Director Gary Chippington, an STV spokesperson told Deadline this morning.
“Gary will have a continuing association with the business as executive producer on the much-loved returning shows that he has delivered over recent years, including Celebrity Catchphrase and Bridge of Lies,” they added.
Following a review into its unscripted business, STV Studios will “stop development activity in STV Studios Entertainment and make no further investment in Mighty Productions.” This comes in response to “market conditions,” a rep said.
STV Studios Entertainment makes daytime gameshows Catchphrase and Bridge of Lies, while Mighty is known making Sex Rated, Style Fixers and Ex Rated, the Peacock ‘anti-dating’ show fronted by Andy Cohen, alongside BBC Studios in 2021. STV Studios will retain its minority stake in Mighty, we hear.
Despite this, STV Studios has landed 30 commissions in 2025 year-to-date, including Two Cities Television’s high-end drama Army of Shadows.
Despite posting broadly flat revenue of £90M ($121.1M), operating profit at STV was down 49% to £3.3M and an adjusted operating profit down 37% year-on-year to £6.7M for the six months to June 30, in the face of tough market conditions. After tax, the company made a £300,000 loss.
STV Studios, which owns the likes of Lego Masters maker Tuesday’s Child, is still on course to post year-round revenue of between £75M-85M, not far behind STV’s Audience segment (£90M-95M). Group revenues are expected to come in at around £165M-180M for 2025.
That hasn’t stopped STV announcing “a comprehensive cost savings programme to protect profitability and provide balance sheet flexibility in response to the deterioration in the advertising and content commissioning markets, and ensure the business is well set for growth as market conditions improve.”
Further cost-saving measures will reduce overheads by £3M, with around £2.5M delivered across 2026. These are incremental to a previously announced cost-saving target of £5M by the end of next year.
STV, which operates Scotland’s largest commercial network, recently increased its bank facility from £70M to £75M by accessing £5M of its £20m accordion loan facility. Furthermore, “amended covenants” will provide “increased headroom,” with £30M currently undrawn.
“I have every confidence that STV will navigate the currently difficult trading environment in both our key markets, successfully implement our FastFwd strategy, and deliver sustainable value to our shareholders,” said STV CEO Rufus Radcliffe.
“We recognise that our cost savings programme impacts colleagues across the business, and we are committed to supporting people through this change. These steps are necessary to strengthen our financial resilience and position STV for long-term growth.”
STV noted its streaming service, STV Player, delivered its best ever H1 performance,
up 8% year-on-year to 37 million hours viewed.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source deadline.com ’
