ITV is cutting £30m from its fourth-quarter expenditure after warning that advertising revenue could fall by as much as 10% during the final three months of 2026.
The broadcaster expects total advertising revenue to decline between 5% and 10% compared with the same quarter last year, reflecting weaker demand from advertisers and growing competition from global digital platforms.
ITV has identified £25m in temporary content savings alongside £5m of reductions in discretionary non-content expenditure within its Media & Entertainment business.
The measures are intended to limit the financial impact of declining advertising income without changing the company’s broader strategic plans.
For the full financial year, ITV forecasts advertising revenue falling between 2% and 3%, compared with an earlier expectation of broadly stable revenue.
The company attributed the weaker market to economic uncertainty, competition from global streaming services, and restrictions on advertising less healthy food products introduced in October 2025.
Advertising revenue across the nine months ended 30 September declined 1% to £1.24bn, including an 8% fall during the third quarter.
Total group revenue was £2.76bn, down 1%, while external revenue declined 2% to £2.36bn.
The financial performance reflects contrasting conditions across ITV’s traditional broadcasting, streaming, and programme production activities.
Streaming audience continues expanding —
While conventional television advertising remains under pressure, ITV reported continued growth in digital services.
Total streaming hours on ITVX increased 29% to approximately 2.15 billion during the first nine months, supported by the availability of major programmes and additional viewing associated with the football World Cup.
Digital revenue increased 7% to £461m, demonstrating that the company’s online activities are expanding despite weaker advertising conditions across the wider group.
However, digital revenue includes subscriptions, advertising, sponsorship, and other commercial activities, meaning the increase cannot be attributed solely to growth in digital advertising.
The combined figures indicate that greater use of ITVX has not yet been sufficient to offset the decline in other parts of the advertising business.
ITV’s Media & Entertainment division generated £1.43bn in revenue during the reporting period, down 1% from £1.45bn.
The broadcaster expects its total content budget to be approximately £1.2bn in 2026 following the temporary reductions.
The cost adjustments will primarily affect expenditure in the final quarter rather than represent a confirmed permanent restructuring of the business.
ITV Studios, the group’s production and international distribution operation, reported revenue of £1.33bn, also down 1% during the first nine months.
Management nevertheless expects Studios to deliver revenue growth for the full year because several major programme deliveries and licensing agreements are scheduled for the final quarter.
Its adjusted operating margin is expected to be towards the lower end of the previously indicated range of 13% to 15%.
ITV chief executive Carolyn McCall said the company remained focused on protecting profitability while delivering growth in production and digital operations.
The broadcaster is also progressing the proposed sale of its Media & Entertainment operation to Sky, with completion still expected during the second half of 2027, subject to regulatory approval.
In the meantime, ITV’s revised advertising forecast and temporary spending reductions reflect an immediate response to weaker demand during one of the industry’s most important commercial trading periods.
