Entertainment <\/p>\n
\n\tScotland\u2019s STV<\/a> is undergoing a \u201ccomprehensive\u201d cost savings program that will see development spend at STV Studios<\/a> Entertainment and investment in Ex Rated<\/em> producer Mighty Productions<\/a> stop. Around 10% of staff will be cut in the process.<\/p>\n \n\tThe news will see the exit of STV Studios Entertainment Creative Director Gary Chippington, an STV spokesperson told Deadline this morning.<\/p>\n \n\t\u201cGary 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<\/em> and Bridge of Lies<\/em>,\u201d they added.\u00a0<\/p>\n \n\tFollowing a review into its unscripted business, STV Studios will \u201cstop development activity in STV Studios Entertainment and make no further investment in Mighty Productions.\u201d This comes in response to \u201cmarket conditions,\u201d a rep said.<\/p>\n \n\tSTV Studios Entertainment makes daytime gameshows Catchphrase<\/em> and Bridge of Lies<\/em>, while Mighty is known making Sex Rated<\/em>, Style Fixers<\/em> and Ex Rated<\/em>, the Peacock \u2018anti-dating\u2019 show fronted by Andy Cohen, alongside BBC Studios in 2021. We hear STV Studios will retain its minority stake in Mighty, which is led by Lynn Sutcliffe and Hugh Rycroft.<\/p>\n \n\tDespite this, STV Studios has landed 30 commissions in 2025 year-to-date, including Two Cities Television\u2019s high-end drama Army of Shadows<\/em>.<\/p>\n \n\tDespite posting broadly flat revenue of \u00a390M ($121.1M), operating profit at STV was down 49% to \u00a33.3M and an adjusted operating profit down 37% year-on-year to \u00a36.7M for the six months to June 30, in the face of tough market conditions. After tax, the company made a \u00a3300,000 loss.<\/p>\n \n\tSTV Studios, which owns the likes of Lego Masters<\/em> maker Tuesday\u2019s Child, is still on course to post year-round revenue of between \u00a375M-85M, not far behind STV\u2019s Audience segment (\u00a390M-95M). Group revenues are expected to come in at around \u00a3165M-180M for 2025.<\/p>\n \n\tThat hasn\u2019t stopped STV announcing \u201ca 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.\u201d<\/p>\n \n\tFurther cost-saving measures will reduce overheads by \u00a33M, with around \u00a32.5M delivered across 2026. These are incremental to a previously announced cost-saving target of \u00a35M by the end of next year. In effect this will mean significant job cuts, which will amount to 60 roles.<\/p>\n \n\tSTV, which operates Scotland\u2019s largest commercial network, recently increased its bank facility from \u00a370M to \u00a375M by accessing \u00a35M of its \u00a320m accordion loan facility. Furthermore, \u201camended covenants\u201d will provide \u201cincreased headroom,\u201d with \u00a330M currently undrawn.<\/p>\n \n\t\u201cI 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,\u201d said STV CEO Rufus Radcliffe.<\/p>\n \n\t\u201cWe 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.\u201d<\/p>\n \n\tSTV noted its streaming service, STV Player, delivered its best ever H1 performance, \n\t\t\tWatch on Deadline\t\t<\/h3>\n<\/p><\/div>\n
up 8% year-on-year to 37 million hours viewed.<\/p>\n<\/div>\n