ITV results post slight decline in first-quarter revenue but maintains full-year outlook
UK commercial broadcaster ITV’s total revenue slipped slightly in the first quarter of 2025, with growth at its ITV Studios (ITVS) arm and a decrease in its Media & Entertainment (M&E) business.
ITV said its results were in line with expectations. Total revenue slipped by 1% to £875m (US$1.2bn) from £887m in Q1 2024, although total external revenue was up 4% at £756m, compared with £727m.
At ITVS, revenue grew by 1% to £386m from £382m, boosted by 20% growth in external revenue, which ITV said reflected strong demand from, and the timing of deliveries to, global streaming platforms. Programmes delivered in the UK and internationally included dramas Run Away (Netflix), The Devil’s Hour (Prime Video) and Malpractice (ITV), and unscripted formats Squid Game: The Challenge (Netflix) and I Kissed a Boy (BBC).
Internal revenue dropped by 26% due to the non-return of long-running entertainment show Saturday Night Takeaway and drama series The Tower, as well as the year-on-year difference in phasing of production and programmes such as dramas The Bay and Grace.
At the M&E business, revenue declined by 3% year-on-year to £489m from £505m, hit by an expected 2% fall in total advertising revenue. Within this, however, digital advertising revenue grew strongly, rising 15%. Digital revenue increased by 10% and non-ad revenue fell by the same percentage.
Total streaming hours at VoD platform ITVX rose by 12% year-on-year to 507 million from 451 million, with monthly active users growing in line with ITV’s expectations.
Looking ahead to the rest of the year, ITV said its outlook for ITVS remains unchanged, expecting good revenue growth and for revenue, profit and margin to be weighted to the second half of the year due to the timing of cost savings and high-margin deliveries.
Margin for the full year will be lower than 2024, which ITV said reflects the change in sales mix as the market recovers from the US strikes in 2023, but still within the 13-15% target range.
The broadcaster also said it is continuing to assess the possibility of trade tariffs in the US and that it doesn’t anticipate any direct impact from the imposition of tariffs on films, given that ITVS only produces TV programmes.
In M&E, ITV expects total ad revenue in Q2 to drop by around 14% year-on-year and by around 8% in the first half of the year, against a strong comparative period that included the men’s UEFA European Football Championship. Compared to the same periods in 2023, total ad revenue is expected to be broadly flat.
Content coming up this year includes the women’s Euros championship, new entertainment series Shark: Celebrity Infested Waters and dramas Code of Silence, I Fought the Law and Ridley.
ITV said it expects to see continued strong growth in digital ad revenue and remains on track to deliver at least £750m of digital revenue by 2026.
ITV’s CEO, Carolyn McCall, said: “Our Q1 performance was in line with our expectations, demonstrating the continued successful implementation of our strategic priorities.
“ITV Studios returned to growth following the impact of the US strikes and is on course to achieve good growth in total revenues over the full year. M&E’s solid performance demonstrates ITV’s market leading position in UK streaming and broadcast. ITVX continues to perform well, and we expect sustained strong growth in digital revenues.
“While the macroeconomic environment is uncertain, we remain confident that our strategic initiatives, our focus on financial and cost discipline and our diversified revenue and customer base will enable us to successfully navigate an evolving market landscape and deliver long-term value to our shareholders.”
French production and distribution giant Banijay is reportedly putting together a takeover bid to acquire ITV or ITVS.
According to the Financial Times last month, Banijay and ITV have held talks about a possible acquisition, with options explored including a full takeover of ITV and ITVS or an offer to just acquire the latter.
ITV is currently valued at just over £3bn, although analysts have said ITVS could be worth that on its own. The company’s share price has risen by a 10th this year following discussions surrounding a potential takeover of ITVS by other interested parties, including private investment firm RedBird IMI in January.
