REG - ITV PLC - ITV plc Half Year Results to 30 June 2025
24/07/2025 07:00
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RNS Number : 3188S ITV PLC 24 July 2025
ITV plc Half-Year results for the six months ended 30 June 2025
2025 Half-Year Highlights:
Our H1 performance is ahead of market expectations as we continue to
successfully execute Phase Two of the More Than TV strategy, including the
expansion of our UK and global production business in ITV Studios,
supercharging our streaming business, ITVX and optimising our highly cash
generative linear broadcast business.
Total revenue was 3% lower, and group adjusted EBITA was 31% lower
year-on-year. This comparison is impacted by a very strong advertising period
in H1 2024, driven by the Men's Euros. Total advertising revenue in H1 2025
was up 2% compared to 2023 and better than guidance. ITVX is continuing its
strong performance with digital advertising revenue up 12% compared to 2024.
Meanwhile, the phasing of high-margin ITV Studios productions and distribution
is weighted towards the second half, giving us confidence that ITV Studios is
on track for good revenue growth for the full year, ahead of the global
content market.
We are announcing an additional £15m in permanent non-content cost savings,
taking the total group permanent non-content savings in 2025 to £45m. There
will be a one-off cost of £40m to achieve the total group savings. We expect
our total content spend to be around £1.23bn in 2025, compared to the
£1.25bn previously indicated, as we continue to optimise our content spend to
best reflect viewer dynamics. While the economic environment remains
uncertain, we now expect a better outturn for the full year 2025, driven by
these cost efficiencies.
Carolyn McCall, ITV Chief Executive, said:
"ITV is now a leaner, more digital business in a strong position to compete
and succeed in a changing market. We have the agility and capability to make
the most of new revenue opportunities while driving profitable growth, strong
cash generation and attractive returns to shareholders.
"ITV Studios continues to see positive momentum, with strong growth in
external revenues in H1, driven by content for the global streaming platforms,
including The Devil's Hour for Amazon Prime Video, and Run Away for Netflix.
"In M&E, ITVX continued its strong performance despite comparatives of the
men's Euros, and Broadcast maintained its strength in delivering the biggest
commercial audiences in the UK. This reinforces M&E's market-leading
position in UK Streaming and Broadcast, delivering strong cash generation.
"We are on track to deliver our 2026 key financial targets, with sustained
good growth in ITV Studios and ITVX coupled with strategic cost management as
we reshape our cost base to reflect the dynamics of the industry in which we
operate."
Outlook: Confident in delivering good revenue growth in ITV Studios and ITVX,
with continued strategic cost management and strong cash generation,
underpinned by our leading linear broadcast business
ITV Studios:
● Our 2025 ITV Studios outlook remains unchanged:
○ Expect good growth in total revenue, faster than the global content
market, driven by external revenue with key programmes such as Rivals S2 for
Disney+, The Reluctant Traveller S3 for Apple TV+, Gomorrah - Origins for Sky,
and Love Island: Beyond the Villa for Peacock in the US
○ Revenue, profit and margin will be weighted to H2, with the H2 margin
being higher than H1, due to the timing of high-margin sales
○ Full year margin will be within the 13-15% target range, although
lower than 2024, reflecting the change in sales mix, as the market continues
to recover following the US strikes
● We remain on track to deliver our target of total organic revenue
growth of 5% on average per annum from 2021 to 2026 - ahead of the market, and
at a margin of 13 to 15%
Media & Entertainment (M&E):
● We expect to see continued good growth in digital advertising
revenues over the medium term and remain on track to deliver at least £750m
of digital revenues by 2026. We have built a really strong platform in ITVX,
which broke even two years earlier than expected and has already recouped its
entire investment. We continue to develop new advertising and
non-advertising revenue opportunities by:
○ Extending our reach and growing the supply of targetable audiences,
with strategic content partnerships, such as YouTube and Disney+, along with
increasing targetable inventory with linear addressable advertising
○ Increasing the demand for our targetable advertising through a range
of commercial innovations. For example, we will launch a premium video
advertising platform for SMEs with Sky, Channel 4 and Comcast's Universal Ads
platform, and we continue to add new products to Planet V, such a contextual
targeting
○ Leveraging our scaled platform, our powerful brand and IP, and
first-party data for new non-advertising digital revenue opportunities, such
as developing ITV Win into a premium destination for competitions and gaming,
● Total advertising revenue (TAR) is expected to be marginally down in
Q3 2025 compared to the same period in 2024, reflecting the tough comparative
from the final knockout matches of the Men's Euros in July 2024. Within this,
we expect continued strong growth in digital advertising revenues
● Total content costs are expected to be around £1.23bn for the full
year, down from £1.25bn as we further optimise content spend to best reflect
viewer dynamics
● ITV has a strong upcoming schedule in H2. This includes new and
returning dramas such as I Fought the Law, Cold Water and Trigger Point;
Entertainment including Ant and Dec's Accidental Tourist and Fortune Hotel S2;
Sport featuring England men's and women's international football; and Reality
including Olivia Attwood's Bad Boyfriends and Big Brother
2025 Half-Year Group Financial Highlights - ahead of expectations
● Total Group external revenue was down 1% at £1,585m (2024:
£1,599m), with growth in ITV Studios external revenue largely offsetting the
decline in TAR
● Total Group revenue was down 3% at £1,848m (2024: £1,903m)
● Delivered £23m of non-content cost savings, which helped fund
investments and offset inflation
● Group adjusted EBITA(1) was down 31% at £146m (2024: £213m),
reflecting the previously guided revenue impacts
● Adjusted EPS(1) was down 45% at 1.8p (2024: 3.3p)
● EBITA(2) was £145m (2024: £200m). Statutory profit before tax was
£67m (2024: £330m) and statutory EPS was 1.2p (2024: 6.6p). The prior period
benefited from the profit on the sale of BritBox International, which was sold
to the BBC for £255m
● Profit to cash conversion of 109% on a rolling 12-month basis; Net
debt of £586m (31 Dec 2024: £431m, 30 June 2024: £515m); Net debt to
adjusted EBITDA leverage of 1.1x (31 Dec 2024: 0.7x, 30 June 2024: 0.9x)
● In line with ITV's dividend policy, the Board has declared an interim
dividend of 1.7p (2024: 1.7p), a total of c.£60m
ITV Studios: Good revenue growth, driven by our creative excellence, scale and
diversification
● Total ITV Studios revenue(3) grew 3% to £893m (2024: £869m)
○ External revenue was up 11%, reflecting strong demand from, and the
timing of programmes for, global streaming platforms
○ Internal revenue declined by 13%, due in part to the absence of
programming such as Saturday Night Takeaway, sports production revenue from
the 2024 Men's Euros, and the phasing of productions
○ Zoo 55 made excellent progress in the first half, as we maximise the
monetisation of our high-value content library through digital distribution
● Adjusted EBITA(1) was down 21% to £107m (2024: £136m), with an
adjusted EBITA margin of 12.0%. This reflects the weighting of revenue, profit
and margin to H2 as previously guided due to the phasing of high-margin sales
being weighted to the second half
Notes:
1. Our APMs are defined within the APMs section of this report. It
also includes a full reconciliation between adjusted and statutory results
2. Statutory operating profit before interest, tax, amortisation
and exceptional items
● ITV Studios had significant creative successes in H1, delivering a
wide range of new and returning programmes and formats in the UK and
internationally to a diversified portfolio of customers, including;
○ Sneaky Links: Dating After Dark for Netflix, Code of Silence
and Shark! Celebrity Infested Waters for ITV, and Love Island USA for Peacock
● To further strengthen our creative output, during the period, we
acquired independent scripted producer, Moonage Pictures, producer of The
Gentlemen and A Good Girl's Guide to Murder, and after the period end we
acquired Plano a Plano, a Spanish scripted producer
Media & Entertainment (M&E): ITVX and Planet V continued to drive
strong digital advertising revenues
● M&E revenue was down 8% at £955m (2024: £1,034m), with total
advertising revenue (TAR) down 7%, better than guidance. Within this, digital
advertising revenue grew 12%
○ Total digital revenues grew 9% (refer to Note 5)
○ Total M&E non-advertising revenue was down 10% to £131m (2024:
£145m), due to the expected decline in subscription and partnership revenues,
driven by the continuous enhancement in the viewer proposition and
monetisation of ITVX
● M&E adjusted EBITA(2) was down 54% at £35m (2024: £76m),
reflecting the decline in TAR, partly offset by lower content spend and cost
savings
● ITVX delivered good growth in viewing with total streaming hours up
15%
● Our successful strategic commercial partnership with YouTube
contributed to the growth in digital advertising revenues and extended our
reach to younger audiences
● ITV linear channels continued to deliver highly valuable mass reach
for advertisers through the breadth of our schedule, with successful
programming across key genres of Entertainment, Reality, Drama and Sport. In
H1, ITV delivered:
○ 91% of the top 1,000 commercially broadcast TV programmes
○ 32.5% share of commercial viewing on our linear television channels
Planning assumptions for the full year 2025
The following planning assumptions are based on our current view.
Profit and Loss Impact:
● Total content costs are expected to be around £1.23bn. This is lower
than the previous guidance of £1.25bn as we further optimise content spend to
best reflect viewer dynamics
● In total, we expect to deliver £45m of permanent non-content savings
which includes £15m of new savings announced today and £30m previously
announced. These will come from a combination of new initiatives and
annualised benefits from the 2024 savings
● Adjusted financing costs are expected to be £45m, £5m higher than
previous guidance
● The adjusted effective tax rate is expected to be around 27% over the
medium term, slightly higher than previous guidance
● Exceptional costs are expected to be around £100m, which is higher
than the previous guidance of £45m due to the increased permanent cost
savings target, corporate transaction-related expenses which are predominantly
performance-based employment-linked consideration to former owners and
professional fees related to actual and potential acquisitions; and costs to
deliver structural changes which will deliver significant permanent savings
Cash impact:
● Cash cost of exceptionals is expected to be around £60m
● Profit to cash conversion is expected to be around 80% on average
over the medium term
● Total capex is expected to be around £65m as we continue to invest
in our digital capabilities
● The Board has proposed an interim dividend of 1.7p, a total of around
£60m, which will be paid in November 2025. The Board intends to pay a
full-year ordinary dividend of at least 5.0p, which it expects to grow over
the medium term
Virtual Results presentation webcast and Q&A:
ITV's virtual results presentation and Q&A session will be held for
investors and analysts at 9.30 am today (BST) via the following link:
https://www.investis-live.com/itv/684941f8d645df000ef712c5/maprt
(https://www.investis-live.com/itv/684941f8d645df000ef712c5/maprt)
You are now able to pre-register to join.
If you would like to ask a question, you will be able to do so via the
following Conference Call details:
Conference Call Dial-In:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 808 189 0158
Global Dial-In Numbers
(https://www.netroadshow.com/conferencing/global-numbers?confId=84156)
Access Code: 341420
Press *1 to ask a question, *2 to withdraw your question, or *0 for operator
assistance.
Please refer to the Global Dial-In Numbers hyperlink above for alternate phone
numbers.
Notes to Editors
1. Unless otherwise stated, all financial figures refer to the 6 months
ended 30 June 2025, with the change compared to the same period in 2024.
2. Group financial performance
We measure performance through a range of metrics, particularly
through our alternative performance measures and KPIs, as well as statutory
results, all of which are set out and defined in this report. Please refer to
the APMs for a reconciliation between adjusted and statutory results.
Six months to 30 June 2025 2024 Change £m Change
£m £m %
ITV Studios total revenue(3) 893 869 24 3
Total advertising revenue 824 889 (65) (7)
M&E non-advertising revenue 131 145 (14) (10)
M&E total revenue 955 1,034 (79) (8)
Total group revenue 1,848 1,903 (55) (3)
Internal revenue(4) (263) (304) 41 13
Group external revenue 1,585 1,599 (14) (1)
Total non-advertising revenue 1,024 1,014 10 1
ITV Studios adjusted EBITA 107 136 (29) (21)
M&E adjusted EBITA 35 76 (41) (54)
Adjusted EBITA 142 212 (70) (33)
Unrealised profit in stock adjustment 4 1 3 300
Group adjusted EBITA 146 213 (67) (31)
Group adjusted EBITA margin 9% 13% - (4)% pts
Statutory operating profit 76 136 (60) (44)
Profit before tax (adjusted) 99 178 (79) (44)
Adjusted EPS 1.8p 3.3p (1.5)p (45)
Statutory EPS 1.2p 6.6p (5.4)p (82)
Net debt as at 30 June (586) (515) (71) (14)
Reported net debt to adjusted EBITDA leverage 1.1x 0.9x - -
Notes:
3. Total ITV Studios revenue includes £39 million (30 June 2024: £38
million) of intra-segment revenue derived from trading between Global
Partnerships and ITV Studios productions
4. Internal revenue originates mainly in the UK and includes trading between
ITV Studios and M&E, and Global Partnerships and ITV Studios productions
3. Total advertising revenue (TAR), which includes ITV Family NAR, digital
advertising and sponsorship, was down 12% in Q2 and down 7% in H1. TAR is
expected to be marginally down in Q3 2025 compared to the same period in 2024,
reflecting the tough comparative from the final knockout matches of the Men's
Euros in July 2024. Within this, we expect continued strong growth in digital
advertising revenues. Figures for ITV plc are based on ITV estimates and
current forecasts.
4. Key performance indicators
Six months to 30 June 2024 Change
2025
Group adjusted EPS 1.8p 3.3p (45)%
Cost savings £23m £23m -
Profit to cash conversion 12-month rolling 109% 73% 36% pts
ITV Studios total organic revenue growth (1)% (12)% 11% pts
ITV Studios adjusted EBITA margin % 12.0% 15.7% (3.7% pts)
Total high-end scripted hours 125 hrs 107 hrs 17%
Number of formats sold in 3 or more countries 13 11 18%
% of ITV Studios total revenue from streaming platforms 27% 22% 5% pts
Total digital revenue £271m £249m 9%
Total streaming hours 1,142m 991m 15%
Monthly active users 16.4m 15.0m 9%
Share of top 1,000 commercial broadcast TV programmes 91% 91% -
Share of commercial viewing (SOCV) 32.5% 33.2% (0.7)% pts
UK subscribers as at 30 June 0.9m 0.9m -
● Our definition of total organic revenue excludes the impact of any
acquisitions made during the current or prior period and the year-on-year
movement in foreign exchange.
● Total digital revenue includes digital advertising revenue and
subscription revenue, as well as linear addressable revenue, digital
sponsorship and partnership revenue, ITV Win and any other revenues from
digital business ventures. In addition, digital advertising revenue now
includes previously omitted revenue streams such as commission from STV for
ITV selling their video-on-demand inventory and social media advertising
revenue, which qualify under the definition. The prior year has been restated
to reflect the change in categorisation. Given the nature of digital revenue,
it will evolve over time. H1 2024 was previously reported as £244m.
● Total streaming hours measure the total number of hours viewers
spent watching ITV across all streaming platforms at a device level. This
figure includes both ad-funded and subscription streaming. Given the nature of
the market and our strategy to grow digital revenues, we will include viewing
hours from platforms and services where we serve ITV content, where we can
reliably and robustly measure and de-duplicate such hours. In H1 2025,
streaming hours also include users accessing our IP-delivered content, for
which data is now available. The prior year figure has been restated to
reflect the inclusion of these hours; it was previously reported as 846m
● Total monthly active users (MAUs) measures the reach of ITV's
content digitally. Given the nature of the market and our strategy to grow
digital revenues, we will include users from platforms and services where we
serve ITV content, where we can reliably and robustly measure and de-duplicate
such users. To date, total MAUs have captured the average number of
identifiable users who accessed our owned and operated ITVX platforms and
services each month throughout the period. In H1 2025, total MAUs also include
users accessing our linear channels on devices where we can identify the user,
for which data is now available. The prior year figure has been restated to
reflect this inclusion; it was previously reported as 14.6m.
● The share of top 1,000 commercial broadcast TV programmes KPI
includes TV viewing from transmission and seven days post-transmission on
catch up, as well as six weeks prior to the transmission window. It excludes
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