Super-indie returns to growth after US strikes as ITV posts solid results
ITV Studios has played down concerns over US tariffs as revenues grew 1% in ITV’s Q1 earnings update.
The super-indie said it will “continue to assess the possibility of trade tariffs” but noted the focus on feature films in president Trump’s tariff statements means it doesn’t “anticipate any direct impact from the imposition of tariffs”.
ITV chief exec Carolyn McCall said ITVS’s return to growth follows the subsiding of the knock-on effects of the US strikes and noted the producer-distributor is “on course to achieve good growth in total revenues over the full year, weighted towards H2 as previously guided.”
ITV Studios posted a revenue of £386m for the first three months of this year, up from the £382m previously, with external revenue up by 20% to offset a 26% decline in internal revenues. This was impacted by the non-return of Saturday Night Takeaway and the Tower with a year-on-year difference in phasing of production on programmes such as The Bay and Grace.
During this period, ITV Studios delivered the second series of Squid Game: The Challenge and Sneaky Links for Netflix as well as the next iteration of BBC series I Kissed a Boy. In drama, ITVS has delivered Run Away for Netflix, The Better Sister, a third series of The Devil’s Hour for Amazon Prime Video and Malpractice for ITV.
The report added that ITV Studios remains on track to deliver its target of total organic revenue growth of 5% on average per annum into 2026, ahead of the market with a margin of 13-15%.
In her statement, McCall added: “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.”
ITVX gains
AVoD platform ITVX saw the highest growth with a 15% boost in digital advertising revenue in Q1.
This growth was ahead of the market expect, McCall pointed out, and she expects “sustained strong growth in digital revenues”.
“This is underpinned by the powerful reach and strong cash generation of M&E [Media & Entertainment],” she added.
Total streaming hours were up by 12% for ITVX too, with monthly active users in line with expectations, with digital advertising revenues remaining on track to deliver at least £750m by 2026.
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