ITV has kicked off 2025 with impressive momentum, fueled by a boost in digital advertising and renewed strength from its production division, ITV Studios—keeping the broadcaster aligned with its strategic transformation.
In its first-quarter trading update concluding on 31 March, ITV announced a 15 per cent year-on-year rise in digital advertising revenue, surpassing wider market trends. This increase is supported by the ongoing growth of its ad-supported streaming service, ITVX, which experienced a 12 per cent rise in total streaming hours during the same timeframe. Overall, digital revenues climbed 10 per cent.
Chief Executive Dame Carolyn McCall stated: “Our Q1 results aligned with our expectations, showcasing the ongoing success of our strategic priorities. ITVX continues to thrive, and we anticipate sustained strong growth in digital revenues.”
Launched in late 2022 as a vital element of ITV’s ‘More Than TV’ strategy, ITVX merges live television with on-demand offerings and has become essential in the company’s efforts to rebrand itself as a digital-first media organization. This digital shift mirrors broader changes in UK viewing preferences, with audiences increasingly leaning towards streaming services over conventional broadcast options—a trend reinforced by Ofcom’s 2023 Media Nations report.
ITV Studios, the organization’s international production entity, recorded particularly robust results, with external revenues surging 20 per cent during the quarter. This was propelled by rising interest from global streaming services, which commissioned several new projects, including Run Away for Netflix and The Better Sister for Amazon Prime Video.
Nonetheless, total Studios revenue saw a modest increase of just one per cent, constrained by a 26 per cent fall in internal commissions. This decline was partially linked to the conclusion of the long-running entertainment program Saturday Night Takeaway, hosted by Ant and Dec, which completed its current season.
Group external revenues rose by four per cent to £756m, a figure bolstered by growth in both Studios and digital sectors. However, overall group revenue fell by one per cent to £875m, mainly due to a decrease in in-house production commissions.
Despite the challenging macroeconomic landscape, ITV upholds its full-year guidance and confirmed it is on track to achieve £30m in cost savings through an ongoing efficiency initiative launched in 2022. The company reaffirmed its goal of reaching £750m in digital revenues by 2026 and believes that its hybrid approach—encompassing digital, linear broadcasting, and content production—positions it well for sustainable growth.
“Although the macroeconomic climate is uncertain, we remain assured that our strategic efforts and focus on cost control will yield long-term value,” McCall added.
This positive update comes amid discussions regarding ITV’s prospective ownership. In April, it was reported that French media giant Banijay—parent of Endemol Shine and producer of hits like MasterChef—was considering a possible acquisition of ITV. The rumored interest arises as consolidation intensifies across the European media sector, driven by the demand for global scale in content production and digital distribution.
The latest figures reinforce ITV’s commitment to transitioning from a conventional broadcaster to a diverse media and entertainment entity, balancing commercial broadcasting, digital innovation, and international production knowledge in an increasingly competitive environment.
