- Strong performance from ITVX
- Total advertising revenue up 2%
- Pressing ahead with non-content cost savings
ITV (ITV) soared 10% to a new 12-month high of 85.1p after the free-to-air broadcaster said its performance was ahead of market expectations for the six months ending 30 June.
The company said it expected to see continued growth in digital advertising revenues over the medium term and remained ‘on track’ deliver at least £750 million of digital revenues by 2026.
Its 2025 ITV Studios outlook remains unchanged driven by external revenue from ‘key programmes’ such as Rivals (season two) for Disney+, The Reluctant Traveller (season three) for Apple TV+, reality TV show Love Island and Beyond Villa for Peacock in the US.
ITV’s streaming business ITVX was a bright spot for the company with total streaming hours up 15% and its strategic partnership with YouTube contributed to growth in digital advertising revenues.
The FTSE 250 company also said it was making an additional £15 million in permanent non-content cost savings, taking total group permanent non-content savings in 2025 to £45 million.
Total group revenue was 3% lower at £1.8 billion and group adjusted EBITA (earnings before interest, taxation, and amortisation) fell 31% to £146 million, reflecting tough comparisons related to the Men's Euros.
WHAT DID THE CEO SAY?
Carolyn McCall said: ‘ITV Studios continues to see positive momentum, with strong growth in external revenues in the first half, driven by content for the global streaming platforms, including The Devil's Hour for Amazon Prime Video, and Run Away for Netflix.
‘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.’
BETTER THAN EXPECTED
Russ Mould, investment director at AJ Bell said: ‘It was always going to be tough job to beat last year’s performance given it had a major advertising boost from the Men’s Euros football.
‘However, ITV has done better than expected, helped by going from strength to strength with digital advertising. The ITVX streaming platform has been a great success, and the company is finding new ways to help advertisers reach a more targeted audience.
‘For all the criticisms around ITV becoming less relevant amid a declining linear TV market and growing competition from modern streaming platforms like Netflix, the UK business is standing firm and showing it still has a lot to offer.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Martin Gamble) own shares in AJ Bell.
