ITV beats expectations despite profits dip, as streaming and Studios deliver
ITV has delivered half year results ahead of expectations, bolstering confidence in its turnaround strategy despite a sharp fall in profits.
Growth in digital advertising and continued momentum at ITV Studios offset tough comparisons with last year’s advertising period during the men’s Euros.
The FTSE 250 broadcaster reported a 31 per cent drop in group adjusted EBITA (earnings before interest, taxes, depreciation, and amortisation) to £146m for the six months to 30 June, and a three per cent fall in total revenue to £1.85bn.
But underlying performance beat market forecasts, buoyed by a 12 per cent increase in digital advertising revenue and solid external growth from ITV Studios, which supplies hit shows to global streaming giants.
Chief executive Carolyn McCall said ITV was now a “leaner, more digital business”, adding that the company remained firmly on track to meet 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 said.
Studios boost
Studios revenue rose three per cent to £893m, driven by an 11 per cent jump in external sales to platforms including Netflix, Amazon Prime Video and Disney Plus.
Titles such as ‘The Devil’s Hour’, ‘Run Away’, and ‘Love Island USA’ contributed to momentum.
ITV said Studios’ performance was weighted towards the second half, with full-year margins expected to land within its 13 to 15 per cent target range, albeit slightly below 2024.
To shore up margins further, ITV announced an additional £15m in permanent non-content cost savings, bringing its total for the year to £45m, though the company flagged a one-off charge of £40m to deliver those efficiencies.
It also trimmed its content spend forecast for 2025 from £1.25bn to £1.23bn.
Despite a fall in statutory profit before tax to £67m (from £330m), reflecting one off gains last year from the BritBox sale, the board maintained its interim dividend at 1.7p per share, totalling around £60m.
Looking ahead, ITV expects continued growth in digital advertising in the second half, although third quarter comparisons will be tough due to last year’s Euros.
The broadcaster also pointed to a strong H2 schedule including new dramas I Fought the Law and Trigger Point, as well as the return of Big Brother and England international football.