ITV H1 profit plummets as total advertising revenue continues to bite
UK commercial broadcaster ITV has reported a drop in profit in the first half of 2025 but said it expects to achieve good revenue growth in the full year.
In the six months to June 30, ITV’s profit-before-tax plummeted to £67m (US$90.7m) from £330m in the first half of 2024, which the broadcaster said was primarily due to the ongoing decline in total advertising combined with the phasing of ITV Studios (ITVS)’ high-margin production and distribution activity being weighted to the second half of 2025.
The first half of 2024 also benefited from the profit on disposal of BritBox International, whereby the broadcaster sold its 50% stake to BBC Studios for £255m.
Adjusted profit-before-tax, which excludes items that don’t affect underlying performance such as restructuring or legal costs, still fell by 44% however, to £99m in H1 2025 from £178m in H1 2024, while adjusted earnings before interest, tax and amortisation (EBITA) decreased by 33% to £142m from £212m over the same period.
ITV said performance was hit following a very strong advertising period in H1 2024, driven by the men’s Euros championship, and that total advertising revenue in H1 2025, which fell by 7%, was 2% higher than H1 2023 and better than guidance.
Within the total advertising revenue, digital advertising revenue grew by 12% year-on-year, boosted by ITV’s commercial partnership with YouTube, which the broadcaster said extended its reach to younger viewers.
Overall revenue dipped by 3% to £1.85bn in H1 2025 from £1.9bn in H1 2024, as 3% revenue growth at production and distribution arm ITVS to £893m from £869m wasn’t enough to offset an 8% decline in the Media & Entertainment (M&E) business to £955m from £1.03bn.
As well as the decline in total advertising revenue, the M&E business was hit by a 10% decrease in non-advertising revenue, which ITV said was due to an expected decline in subscription and partnership revenue “driven by the continuous enhancement in the viewer proposition and monetisation of [streamer] ITVX.”
Digital revenue, meanwhile, grew by 9% year-on-year, with ITVX reporting a 15% rise in total streaming hours.
At ITVS, internal revenue declined by 13% year-on-year due in part to the absence of long-running primetime series Saturday Night Takeaway, which ended last year, as well as the lack of sports production revenue from the 2024 men’s Euros and the phasing of productions.
External revenue grew by 11%, however, which ITV said reflected strong demand from, and the timing of, programmes for global streaming platforms. Programme highlights included Sneaky Links: Dating After Dark for Netflix and Love Island USA for NBCUniversal-owned Peacock.
Despite the fall in profit and slight revenue decline, ITV said its H1 performance was ahead of market expectations and that it is on track for good revenue growth for the full year.
At ITVS, the broadcaster expects revenue to continue to be driven by external sources, with key programmes including Rivals S2 for Disney+, The Reluctant Traveller S3 for Apple TV+, Gomorrah – Origins for Sky and Love Island: Beyond the Villa for Peacock.
The broadcaster downgraded slightly its total content spend expectation for 2025 to around £1.23bn, from the £1.25bn previously forecast, which it said comes as it continues to “optimise our content spend to best reflect viewer dynamics.”
ITV expects its cost efficiencies to deliver a better outcome for the full year than previously forecast.
Carolyn McCall, ITV’s CEO, said: “ITV is now a leaner, more digital business in a strong position to compete and succeed in a changing market. We have the agility and capability to make the most of new revenue opportunities while driving profitable growth, strong cash generation and attractive returns to shareholders.
“ITV Studios continues to see positive momentum, with strong growth in external revenues in H1, driven by content for the global streaming platforms, including The Devil’s Hour for Amazon Prime Video, and Run Away for Netflix.
“In M&E, ITVX continued its strong performance despite comparatives of the men’s Euros, and broadcast maintained its strength in delivering the biggest commercial audiences in the UK. This reinforces M&E’s market-leading position in UK streaming and broadcast, delivering strong cash generation.
“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.”
