UK broadcasting giant ITV reported a 31% drop in adjusted EBITA for the first half of 2025, falling to £146 million ($198 million) from £213 million ($289 million) in the same period last year. The decline was attributed to tough year-on-year comparisons with the Euros-influenced 2024 results and a changing revenue mix in its Studios segment.
Despite the downturn, ITV executives maintained that the company’s transformation strategy remains firmly on course.
Total external revenue dipped 1% to £1.59 billion ($2.16 billion), while group revenue fell 3% to £1.85 billion ($2.51 billion), according to interim results published Thursday.
CEO Carolyn McCall emphasized the broadcaster’s resilience, stating, “a leaner, more digital business in a strong position to compete,” supported by “double-digit growth in digital advertising and strong cash generation.” ITVX, the company’s ad-supported streaming service, posted a 12% increase in digital ad revenue, driven by a 15% rise in streaming hours and a boost in monthly active users to 16.4 million.
ITV Studios recorded an 11% rise in external revenue, reaching £632 million ($857 million), bolstered by high-profile titles such as The Devil’s Hour for Prime Video, Run Away for Netflix, and Love Island USA for Peacock. However, internal revenues declined due to the absence of major 2024 programming like Saturday Night Takeaway and coverage of the men’s Euros. As a result, Studios EBITA dropped 21% to £107 million ($145 million), with profitability expected to improve in the second half.
In the Media & Entertainment (M&E) segment, total advertising revenue fell 7% to £824 million ($1.12 billion), although growth in digital helped soften the impact. Overall M&E revenue declined 8% to £955 million ($1.3 billion), while EBITA in the segment plunged 54% to £35 million ($47.5 million), despite £23 million in cost savings and lower content spend.
ITV highlighted upcoming content launches such as Cold Water, Trigger Point, and Big Brother as key contributors for H2 performance. ITVX now features over 26,000 hours of content and has formed new partnerships with YouTube and Disney+ to attract younger and more diverse audiences.
The broadcaster maintained its interim dividend at 1.7p per share, amounting to around £60 million ($81.5 million), and reiterated its full-year dividend commitment of at least 5p.
Cost-cutting remains a core part of ITV’s strategic roadmap, with an additional £15 million ($20.36 million) in non-content savings bringing the total for 2025 to £45 million ($61 million). However, these savings come at a price a £40 million ($54.3 million) one-off cost, with total exceptional costs for the year now expected to reach £100 million ($135.7 million), significantly above earlier projections due to transformation and M&A-related spending.
Net debt rose to £586 million ($796 million) at the end of June, up from £515 million in the same period last year. Nonetheless, ITV delivered a profit-to-cash conversion rate of 109% on a 12-month rolling basis, with free cash flow at £43 million ($58 million) for H1.
Looking ahead, ITV expressed confidence in achieving full-year revenue growth in both Studios and ITVX, with stronger margins anticipated in the second half.
We are on track to deliver our 2026 key financial targets, coupled with strategic cost management as we reshape our cost base to reflect the dynamics of the industry in which we operate.
McCall added
Source: Variety