ITV targets £35m cost savings amid modest revenue uplift

ITV is to make further cost savings of over £30m as it braces itself for a tricky fourth quarter in light of the UK’s economic outlook.

The broadcaster increased its revenues by 2%, ahead of market expectations, according to its Q3 financial results today, with double-digit growth from ITV Studios boosting the overall picture.

Chief exec Carolyn McCall introduced the results with caution, pointing to the upcoming Budget later this month and wider economic uncertainty, which ITV anticipates will see total advertising revenue (TAR) dip by 9%.

The broadcaster has identified £35m additional temporary savings in its Media and Entertainment (M&E) division for Q4, across content and discretionary spend, which it says will largely offset the reduction in TAR.

It means some programming will be moved into 2026 and financed out of the existing 2026 content spending plans, saving approximately £20m, with the content budget for 2025 expected to be approximately £1.2bn.

The additional £15m of savings come from non-content savings such as reducing marketing spend on the adjusted content slate.

McCall added: “We do not anticipate these temporary savings to impact our ability to deliver our strategic plan. We continue to expect to outperform the broadcast advertising market in Q4 and have a strong programme slate for Q4 and into 2026, including the men’s 2026 Football World Cup.”

Total group revenue hit £2.8bn, up from £2.7bn in 2024, while ITVS’s jumped from £1.2bn to £1.4bn in the same timeframe.

Studios’ performance helped offset the TAR decline, with digital advertising revenue also performing well, up by 15% thanks to a strong performance by streamer ITVX.

The Q3 results provided a welcome boost after ITV’s half year results had revealed that profits had fallen by a third in the first half of the year, hitting £146m, a 31% decline on the previous year’s £213m with total group revenue down by 3% to £1.8bn compared with £1.9bn the previous year.

For Q3, total advertising revenue landed flat, which is ahead of guidance but remains down by 5% year to date. This has been attributed to a strong performance in 2024 driven by the Men’s Euros.

McCall hailed the “good performance in a tough advertising market”.

“Both our businesses are performing well, reflecting the significant transformation we have delivered,” she added.

“Our strategic initiatives continue to progress well, and we remain confident in delivering good growth in ITV Studios revenue and digital revenue for the full year. This is supported by laser-focused strategic cost management and underpinned by our resilient and highly cash generative linear broadcast business.”

In detail

ITVS is on track to deliver its target of a 5% uplift in total revenue growth to 2026 and will deliver a profit margin of 13-15%. External revenue was up by 20%, reflecting strong demand from programmes for global streaming platforms.

This made up for an internal revenue dip of 7%, partly due to the absence of programming such as Saturday Night Takeaway and major sports revenue from the 2024 Men’s Euros, as well as production phasing.

Some of the shows delivered by ITVS in Q3 include The Reluctant Traveller series 3 for Apple TV, Frauds for ITV and The Guest for BBC1.

Meanwhile, M&E expects continued growth in digital advertising revenue for the rest of the year, but for total advertising revenue to be down by around 6% for the full year of 2025.

Total M&E revenue was down by 5% at £1.4bn compared with 2024’s £1.5bn.