ITV PLC

Latest Results (04.10.2025):

ITV PLC has released its financial results for the first half of 2025, demonstrating performance that surpasses market expectations. The company has made significant strides in executing Phase Two of its More Than TV strategy, including expanding ITV Studios' production capabilities, enhancing its streaming service ITVX, and optimizing its linear broadcast business to generate robust cash flows.

Revenue Performance

Total revenue for ITV PLC decreased by 3% to £1,848 million in H1 2025 compared to £1,903 million in H1 2024. Despite the overall decline, ITV Studios saw a 3% increase in revenue, primarily driven by a 11% rise in external revenue. Meanwhile, digital advertising revenue from ITVX grew by 12%, contributing positively to the group’s financials.

Cost Savings Initiatives

The company announced an additional £15 million in permanent non-content cost savings, bringing the total to £45 million for 2025. A one-off cost of £40 million was incurred to achieve these savings. These measures are expected to optimize content spending to approximately £1.23 billion, down from the previously indicated £1.25 billion, thereby enhancing overall financial stability amidst economic uncertainties.

Profit and Earnings

Group adjusted EBITA fell by 31% to £146 million year-on-year, while adjusted EPS declined by 45% to 1.8p. Statutory profit before tax was reported at £67 million, a significant decrease from £330 million in the same period last year. Despite these declines, profit to cash conversion remained strong at 109% on a rolling 12-month basis, and net debt stood at £586 million.

ITV Studios Growth

ITV Studios achieved a 3% revenue growth to £893 million, with external revenue increasing by 11 due to strong demand from global streaming platforms. The division expects continued revenue growth in the second half of the year, supported by new program launches and strategic acquisitions, including Moonage Pictures and Plano a Plano.

Media & Entertainment Sector

The Media & Entertainment segment faced an 8% revenue decline to £955 million, although total advertising revenue was down only 7%, surpassing guidance expectations. Digital advertising within this segment saw a 12% increase, and ITVX's streaming hours grew by 15%, bolstered by a successful partnership with YouTube that expanded reach to younger audiences.

Dividend Declaration

In line with ITV PLC’s dividend policy, the Board has declared an interim dividend of 1.7p per share, maintaining the total dividend payout at approximately £60 million for the period.