ITV has reported half-year results that exceeded expectations, boosting confidence in its recovery strategy despite a significant drop in profits.
The broadcaster's growth in digital advertising and ongoing momentum at ITV Studios helped to counterbalance the challenging comparison with last year's advertising period during the men's Euros, as reported by .
The FTSE 250 company disclosed a 31% decrease in group adjusted EBITA (earnings before interest, taxes, depreciation, and amortisation) to £146m for the six months leading up to 30 June, along with a 3% decline in total revenue to £1.85bn.
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However, the underlying performance surpassed market predictions, supported by a 12% rise in digital advertising revenue and robust external growth from ITV Studios, which provides popular shows to global streaming giants.
CEO Carolyn McCall described ITV as a "leaner, more digital business", asserting that the firm remains on course to achieve its 2026 growth targets despite ongoing economic uncertainty.
"We have the agility and capability to make the most of the new revenue opportunities while driving profitable growth, strong cash generation and attractive return to shareholders," she stated.
Studios boost
Studio revenues increased by 3% to £893m, propelled by an 11% surge in external sales to platforms such as Netflix, Amazon Prime Video, and Disney Plus. Shows like 'The Devil's Hour', 'Run Away', and 'Love Island USA' contributed to this momentum.
ITV has indicated that the performance of its Studios division is expected to peak in the second half of the year, with full-year margins projected to fall within the 13 to 15 per cent target range, albeit slightly below 2024.
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In an effort to bolster margins, ITV has announced an additional £15m in permanent non-content cost savings, bringing the total for the year to £45m.
However, the company has flagged a one-off charge of £40m to achieve these efficiencies. The broadcaster has also reduced its content spend forecast for 2025 from £1.25bn to £1.23bn.
Despite a drop in statutory profit before tax to £67m (down from £330m), due to one-off gains last year from the BritBox sale, the board has maintained its interim dividend at 1.7p per share, totalling around £60m.
Looking forward, ITV anticipates continued growth in digital advertising in the second half, although third quarter comparisons will be challenging due to last year's Euros.
The broadcaster also highlighted a strong H2 schedule featuring new dramas I Fought the Law and Trigger Point, as well as the return of Big Brother and England international football.