ITV, the UK commercial broadcaster, has reported that full Q1 revenues dipped slightly in Q1 2025, with gains at ITV Studios (ITVS) arm and losses in its Media & Entertainment (M&E) business. Streaming platform ITVX continues to boost the company’s digital revenues, and also saw a significant increase in total streaming hours during the quarter.

Carolyn McCall, ITV Chief Executive, commented: “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, weighted towards H2 as previously guided.”

“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. This is underpinned by the powerful reach and strong cash generation of M&E. As previously guided, the year-on-year Q2 TAR outlook reflects the benefit in 2024 of the men’s Euros which drove substantial advertising revenues. Compared to the same period in 2023, Q2 and H1 2025 TAR are expected to be broadly flat year on year. We are continuing to make good progress in implementing our cost and efficiency programme and are on track to deliver significant non-content cost savings while optimising our content spend to best reflect viewer dynamics.

“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,” McCall concluded.

Financial and operating performance for Q1

• Total external Group revenue was up 4 per cent at £756 million (€896.7m), with growth in external Studios revenue more than offsetting the decline in total advertising revenue (TAR)
• Total Group revenue was down 1 per cent at £875 million, reflecting a decline in internal ITV Studios revenues

ITV Studios

• Total ITV Studios revenue was up 1 per cent at £386 million (2024: £382 million)

• • External revenue was up 20 per cent reflecting strong demand from, and the timing of deliveries to, global streaming platforms
  • Internal revenue declined by 26 per cent, impacted by the non-return of Saturday Night Takeaway and The Tower, and the year-on-year difference in phasing of production of programmes such as The Bay and Grace

• During the period, ITV Studios delivered a wide range of new and returning programmes and formats in the UK and internationally, including

• • Scripted programmes – Run Away for Netflix, The Better Sister and The Devil’s Hour for Prime Video, and Malpractice for ITV
  • Unscripted programmes – Squid Game: The Challenge and Sneaky Links for Netflix, and I Kissed A Boy for the BBC

Media & Entertainment (M&E)

• Total M&E revenue declined 3 per cent to £489 million, with TAR down 2 per cent as previously guided. Within this, digital advertising revenue (a component of digital revenue) grew strongly, up 15 per cent
• ITVX’s strong performance continued in Q1, with total streaming hours up 12 per cent, and monthly active users continuing to grow in line with expectations
• Digital revenues increased by 10 per cent
• Non-advertising revenue decreased by 10 per cent as expected
• In addition to the impressive digital growth, ITV maintained its strength in delivering mass reach for advertisers, with 91 per cent of the top 1,000 commercially broadcast TV programmes and 34 per cent share of commercial viewing on our linear television channels

Outlook

ITV Studios

• ITV Studios outlook remains unchanged:

• • ITV expects good revenue growth, faster than the global content market, driven by external revenue
  • Revenue, profit and margin will be weighted to H2, with the H2 margin being higher than H1, due to the timing of cost savings and high-margin deliveries

ITV added it continue to assess the possibility of trade tariffs in the US. ITV Studios only produces TV programming and therefore does not anticipate any direct impact from the imposition of tariffs on films

Media & Entertainment

• Compared to the same period in 2024, TAR is expected to be down around 14 per cent in Q2 2025 and down around 8 per cent in H1 2025 against the strong comparatives resulting from the Men’s Euros in 2024. Compared to 2023, Q2 and H1 2025 TAR are expected to be broadly flat. As guided, the first four months to the end of April 2025 were flat year on year
• ITV says it has a “strong” upcoming schedule. This includes the Women’s Euros, new entertainment series Shark: Celebrity Infested Waters, and new and returning dramas such as Code of Silence, I Fought The Law and Ridley
• ITV expects to see continued strong growth in digital advertising revenues and remain on track to deliver at least £750 million of digital revenues by 2026

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Categories: Articles, Broadcast, Business, Results

Tags: Carolyn McCall, itv, ITVX