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ITV PLC on Thursday said it expects a better full-year outcome, driven by cost efficiencies, after reporting first-half results ahead of market expectations. In response, shares in the London-based media company jumped 9.9% to 85.15 pence each in London on Thursday. ITV said pretax profit slumped to just £67 million in the six months to June 30 from £330 million a year prior. Adjusted earnings before interest, tax, depreciation and amortisation fell 33% to £142 million from £212 million but comfortably beat the £117 million market consensus cited by UBS. Group revenue fell 2.6% to £1.85 billion compared to £1.90 billion a year ago. ITV Studios revenue rose 2.8% to £893 million from £869 million with advertising sales down 7.3% at £824 million from £889 million. ITV explained advertising the comparison is impacted by a very strong period in the first half of 2024, driven by the men’s Euros football tournament. The company pointed out advertising revenue was up 2% compared to the first half of 2023 and better than guidance. ‘Our H1 performance is ahead of market expectations as we continue to successfully execute phase two of the More Than TV strategy, including the expansion of our UK and global production business in ITV Studios, supercharging our streaming business, ITVX and optimising our highly cash generative linear broadcast business,’ ITV said in a statement. ITV announced an additional £15 million in permanent non-content cost savings, taking the total group permanent non-content savings in 2025 to £45 million. The firm said there will be a one-off cost of £40 million to achieve the savings. In addition, the company expects total content spend to be around £1.23 billion in 2025, compared to £1.25 billion previously indicated. ‘While the economic environment remains uncertain, we now expect a better outturn for the full year 2025, driven by these cost efficiencies,’ it added. Chief Executive Carolyn McCall said ITV is ‘on track’ to deliver 2026 key financial targets, with sustained good growth in ITV Studios and ITVX coupled with strategic cost management. For 2025, ITV said it remains on track to deliver its target of total organic revenue growth of 5% on average per annum from 2021 to 2026 - ahead of the market, and at a margin of 13 to 15%. Total advertising revenue is expected to be marginally down in the third quarter year-on-year reflecting the ‘tough’ comparative from the final knockout matches of the men’s Euros in July 2024. Within this, ITV expects continued strong growth in digital advertising revenue. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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