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Highlights:

  • ITV PLC reported a 31% YoY drop in group adjusted EBITA to GBP 146 million in H1FY25.
  • ITV Studios revenue rose 3%, with external sales up 11%, while internal revenues declined 13%.
  • ITV’s total content spend revised down to GBP 1.23 billion, reflecting content optimisation strategy.

ITV PLC (LSE:ITV) is a UK-based media company operating through two primary divisions: ITV Studios, which produces content for both ITV’s own platforms and global broadcasters; and Media & Entertainment (M&E), which includes ITVX, its ad-supported streaming service, and linear broadcast operations. For the six months ended 30 June 2025, ITV reported a 3% decline in total revenue to GBP 1.85 billion, and a 31% year-on-year fall in group adjusted EBITA to GBP 146 million. The prior-year period included one-off gains from the Men's Euros and the sale of BritBox International. Statutory profit before tax dropped to GBP 67 million from GBP 330 million a year earlier, and adjusted EPS fell 45% to 1.8p.

The group’s external revenue was relatively stable at GBP 1.59 billion (down 1%), supported by growth in ITV Studios, while internal revenues declined due to programming phasing. ITV Studios adjusted EBITA fell 21% to GBP 107 million, with margins of 12%, reflecting the anticipated H2-weighting of higher-margin content sales. M&E revenue dropped 8% to GBP 955 million, with total advertising revenue (TAR) down 7% compared to H1 FY24. However, digital advertising revenues grew 12%, helped by ITVX’s performance and partnerships such as YouTube and Disney+. M&E adjusted EBITA declined 54% to £35 million.

ITV delivered GBP 23 million in non-content cost savings in H1FY25 and announced an additional GBP 15 million in permanent cost cuts, taking the FY25 savings target to GBP 45 million. Achieving these savings will incur a one-off cost of GBP 40 million. The company lowered its full-year content spend forecast to GBP 1.23 billion from GBP 1.25 billion, citing efforts to better align investment with viewer preferences. Capex is expected to total around GBP 65 million in 2025, focused on digital capability enhancements. Profit-to-cash conversion was 109% on a rolling 12-month basis, with net debt rising to GBP 586 million. Net debt to adjusted EBITDA stood at 1.1x as of 30 June 2025. An interim dividend of 1.7p per share was declared, in line with the prior year. ITV also reiterated its intention to deliver a full-year ordinary dividend of at least 5.0p.

ITV reaffirmed its 2026 targets, which include total organic revenue growth of 5% per annum in ITV Studios and reaching at least £750 million in digital revenues by 2026. ITV Studios is expected to deliver revenue growth faster than the global content market, with H2 performance driven by key releases such as Rivals S2 (Disney+), Love Island: Beyond the Villa (Peacock), and The Reluctant Traveller S3 (Apple TV+). M&E is expected to see continued growth in digital advertising, although Q3FY25 TAR will face tough comparatives due to last year’s UEFA Euro matches. ITVX has broken even two years ahead of schedule and is now generating returns. Exceptional costs are projected to total around GBP 100 million for FY25, higher than previously guided, due to enhanced cost-saving targets and acquisition-related charges. Adjusted financing costs are expected at GBP 45 million, and the effective tax rate is anticipated to be 27% over the medium term.

ITV shares were trading 6.77% higher at GBX 82.75 per share as on 24 July 2025.