Coverage of Scotland’s election counts by STV, the commercial broadcaster, is expected to be heavily hit by strike action in an escalating dispute over pay.

The National Union of Journalists and the technical union Bectu have targeted STV’s election reporting for their second strike this year in protest at its decision to impose a company-wide pay freeze after a significant fall in revenues.

About 120 journalists and broadcast staff are expected to take strike action on Friday.

Staff are also furious STV has cut personnel numbers and plans to heavily reduce its news coverage from northern Scotland – the region previously covered by Grampian TV, in a move to cut costs, while investing money in launching a radio station.

The media regulator Ofgem postponed a decision on the merger of STV Central with STV North until after the Holyrood election, but is expected to approve it later this month subject to minor changes.

The broadcaster’s revenues last year fell by 6% to £176.9m, with ad revenue declining by 10% to £89.3m, blaming a series of “shocks” last year including a weak economy, rising costs and a challenging advertising market.

That led to a dramatic fall in STV’s share price, raising the possibility it could be vulnerable to a takeover by Comcast, the US media company that owns Sky, or by ITV, after previously fending off pressure to sell itself to a larger broadcaster.

Nick McGowan-Lowe, the NUJ’s Scotland organiser, said: “Every NUJ member in the STV newsroom would much rather be broadcasting from election counts today rather than having to fight to be paid a fair wage, but they have been left with no choice when the company has decided to spend that money on a new commercial radio station instead.

“While the company faces financial challenges, none of that is down to the hard-working staff at STV News who produce the most watched evening programme in Scotland. We believe that a solution to this dispute is still in reach.”

In a letter to staff on Thursday morning, Rufus Radcliffe, STV’s chief executive, said the salary freeze had not been decided lightly but the company had also reorganised its bank loans, suspended dividend payments to shareholders and restructured pension deficit payments.

He said: “We are now prioritising job security and delivering financial sustainability.

“We decided that to make a salary award in 2026 would be fiscally irresponsible and potentially give rise to the need to identify further costs savings later this year, a situation I am firmly committed to seeking to avoid as we stabilise the business and return to growth.”

Radcliffe said diversifying with the new radio station and digital investments were designed to guard against over-reliance on a “linear” television station facing heavy competition from social media and new media. “In the face of such rapid change, there are choices we have to make.”

An STV spokesperson said: “We are disappointed that the unions’ chosen day of action will impact our on-air audiences and we remain committed to continuing the dialogue with the joint unions.”