ITV is to make further cost savings of £35m as it braces itself for a tricky fourth quarter in light of the UK’s ongoing economic struggles.
The broadcaster increased its revenues by 2%, ahead of market expectations, in its Q3 financial results today, with double-digit growth from ITV Studios (ITVS) boosting the overall results.
However, chief exec Carolyn McCall took a cautionary stance despite the results, highlighting the heavily anticipated upcoming Budget and wider economic uncertainty, which ITV anticipates will see bring about an advertising revenue dip of around 9%.
The broadcaster has identified £35m of temporary savings in its Media and Entertainment (M&E) division for Q4 across content and discretionary spend, which it says will largely offset the expected reduction in ad revenue.
It means some programming will be moved into 2026 and financed out of the existing 2026 content spending plans, saving approximately £20m, with the content budget for 2025 expected to be approximately £1.2bn.
READ MORE: A Marriage made in heaven – KISS and C4 team up for on-air Married at First Sight wedding
The additional £15m of savings come from non-content savings , including reducing marketing spend on the adjusted content slate.
McCall added: “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.”
Total group revenue hit £2.8bn, up from £2.7bn in 2024, while ITVS’s jumped from £1.2bn to £1.4bn in the same timeframe, helping to offset the ad revenue decline. Digital advertising revenue also performing well, up by 15% thanks to a strong performance by streamer ITVX.
The Q3 results provided a welcome boost after ITV’s half year results had revealed that profits had fallen by a third in the first half of the year, hitting £146m, a 31% decline on the previous year’s £213m, with total group revenue down by 3% to £1.8bn compared with £1.9bn the previous year.
For Q3, total advertising revenue was flat, which was ahead of guidance but down by 5% year to date. This has in part been attributed to a particularly strong performance in 2024, driven by England’s run to the finals of the Men’s Euros.
McCall hailed the “good performance in a tough advertising market”.
“Both our businesses are performing well, reflecting the significant transformation we have delivered,” she added. “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.”
ITVS remains on track to deliver its target of a 5% uplift in revenue growth to 2026, and should deliver a profit margin of 13-15%. External revenue was up by 20%, reflecting strong demand for programmes from global streaming platforms.
Image: N Chadwick/Geograph/Creative Commons
