ITV plc Q3 Trading Update
06/11/2025 07:00
RNS Number : 3808G ITV PLC 06 November 2025 ITV plc Q3 Trading Update for the nine months to 30 September 2025 Q3 YTD Highlights: Our performance for the 9 months to the end of September was better than market expectations, as we continue to successfully execute our More Than TV strategy. Total Group revenue grew 2% YTD, driven by ITV Studios up 11% and digital advertising up 15% as ITVX continues to perform strongly. Total advertising revenue (TAR) was flat in Q3, ahead of guidance, and down 5% YTD against a strong advertising performance in 2024, driven by the Men's Euros. TAR for the 9 months to the end of September 2025 was flat versus 2023. For the full year, we are on track to deliver good revenue growth in ITV Studios at a margin of 13-15%. The economic outlook in the UK remains uncertain with widespread caution being exercised across business sectors ahead of the Budget in November. This is impacting demand for advertising throughout the industry in Q4, with ITV TAR expected to be down around 9% in the quarter. In response to this current reduction in advertising demand, we have identified £35 million of additional temporary savings in Media & Entertainment (M&E) in Q4. These savings align our M&E cost base - particularly content and discretionary spend - with the softer advertising demand we are seeing in Q4 and will largely offset the expected reduction in TAR. Carolyn McCall, ITV Chief Executive, said: "ITV has delivered a good performance in a tough advertising market. Both our businesses are performing well, reflecting the significant transformation we have delivered. Our strategic initiatives continue to progress well, and we remain confident in delivering good growth in ITV Studios revenue and digital revenue for the full year. This is supported by laser-focused strategic cost management and underpinned by our resilient and highly cash generative linear broadcast business. "UK macro data is showing a softening economy, with increased uncertainty in the lead up to the UK Budget which is impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand. We do not anticipate these temporary savings to impact our ability to deliver our strategic plan. We continue to expect to outperform the broadcast advertising market in Q4, and have a strong programme slate for Q4 and into 2026, including the men's 2026 Football World Cup." Outlook: On track for full year guidance ITV Studios: ● Our 2025 full year revenue and margin outlook is unchanged ● 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 13-15% Media & Entertainment (M&E): ● We expect continued growth in digital advertising revenue during the rest of the year. TAR is expected to be down around 9% YOY in Q4 2025 and down around 6% over the full year 2025, as a result of the softening of the UK economy and consumer and corporate uncertainty in the lead up to the UK's Autumn Budget at the end of November ● To match our costs to this softer demand, we have identified £35 million of additional temporary savings in Q4 in M&E. This comprises: ○ £20 million of content savings, as we move some programming into 2026 which will be financed out of the existing 2026 content spending plans. The total content budget for 2025 is expected to be around £1.21 billion ○ £15 million of non-content savings, primarily from reduced discretionary spend reflecting the lower demand environment and reduced marketing spend aligned with the adjusted content slate, and marketing efficiencies ○ These savings will be one-off in 2025 ● ITV continues to have a strong schedule in Q4, which includes I'm A Celebrity…Get Me Out Of Here, The 1% Club Rollover, The Accidental Tourist with Ant & Dec, and men's and women's international football ● We remain on track to deliver at least £750 million of digital revenues by 2026 As previously guided, we expect to deliver £45 million of total Group permanent non-content savings in 2025. 2025 Q3 YTD Group Financial Highlights - ahead of expectations ● Total Group external revenue was up 4% at £2,404 million (2024: £2,321 million), with strong growth in ITV Studios external revenue more than offsetting the decline in TAR ● Total Group revenue was up 2% at £2,795 million (2024: £2,741 million) ITV Studios: Strong revenue growth, driven by demand for our creative output from global streaming platforms ● Total ITV Studios revenue grew 11% to £1,350 million (2024: £1,217 million) ○ ITV Studios external revenue was up 20%, reflecting strong demand from, and the timing of programmes for global streaming platforms ○ Internal revenue declined by 7%, 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, which are weighted to Q4 ○ Zoo 55 continued to make good progress, with new partnerships with Spotify and Merzigo, and the launch of a new ITVX FAST channel with the Space Exploration Network ● ITV Studios had significant creative successes in Q3, delivering a wide range of programmes globally to a diversified portfolio of customers, including; ○ The Reluctant Traveller S3 for Apple TV+, Love Island Games for Peacock in the US, Frauds for ITV and The Guest for BBC Media & Entertainment (M&E): Fast-growing digital advertising revenues driven by ITVX and Planet V, and our new digital revenue opportunities ● Total M&E revenue was down 5% at £1,445 million (2024: £1,524 million). Within this, digital advertising revenue (a component of digital revenue) grew 15% ● ITVX delivered good growth in viewing, with total streaming hours up 14% ● Digital revenues increased by 13% (refer to Note 4) ● Our strategic content partnerships are performing well, contributing to growth in our digital advertising revenues and extending our reach to younger audiences ○ On YouTube, over 50% of the viewing of ITV's content is from 25-54 year olds ○ During the period, we launched an ITVX Premium channel on Amazon Prime Video ● ITV linear channels continued to deliver highly valuable mass reach for advertisers through the breadth of our schedule. Q3 YTD, ITV delivered: ○ 90% of the top 1,000 commercially broadcast TV programmes (2024: 92%) ○ 31.8% share of commercial viewing on our linear television channels (2024: 32.3%) ● Total M&E non-advertising revenue was down 6% to £198 million (2024: £211 million), as expected Notes to editors 1. Unless otherwise stated, all financial and operating figures refer to the nine months ended 30 September 2025, with growth compared to the same period in 2024. 2. Group financial performance
| Revenue for nine months to 30 September (£m) | 2025 | 2024 | Change £m | Change % |
| Media and Entertainment | 1,445 | 1,524 | (79) | (5) |
| ITV Studios* | 1,350 | 1,217 | 133 | 11 |
| Total revenue | 2,795 | 2,741 | 54 | 2 |
| Internal revenue** | (391) | (420) | 29 | 7 |
| Total external revenue | 2,404 | 2,321 | 83 | 4 |
| Revenue for nine months to 30 September (£m) | 2025 | 2024 | Change £m | Change % |
| Total advertising revenue | 1,247 | 1,313 | (66) | (5) |
| Non-advertising revenue | 1,548 | 1,428 | 120 | 8 |
| Internal revenue* | (391) | (420) | 29 | 7 |
| Total external revenue | 2,404 | 2,321 | 83 | 4 |
| Nine months to 30 September | 2025 | 2024 | Change |
| ITV Studios total organic revenue growth/(decline) | 7% | (19)% | 26% pts |
| Total digital revenue | £432m | £384m | 13% |
| Total streaming hours (hrs) | 1,660m | 1,453m | 14% |
| Share of commercial viewing | 31.8% | 32.3% | (0.5)% pts |
| Share of top 1,000 commercial broadcast TV programmes | 90% | 92% | (2)% pts |