ITV Reports Strong Start to 2025 Despite Challenging Market Conditions
ITV, the British broadcaster, has started off 2025 on a positive note, with its Q1 results meeting expectations despite facing difficult market conditions. The company remains confident about the potential impact of U.S. trade tariffs, particularly on its ITV Studios division, which primarily produces TV programming and is not directly affected by tariffs on films.
In the first quarter of the year, ITV saw a 4% increase in total external Group revenue, reaching £756 million. This growth was driven by a rise in external Studios revenue, which offset a decline in total advertising revenue. The company’s diversified revenue streams played a key role in this performance.
ITV Studios reported a 1% increase in revenue in Q1, reaching $513 million. The external revenue saw a significant surge of 20%, driven by strong demand from global streaming platforms. This growth helped offset a 26% decline in internal revenue, which was impacted by the non-return of certain programs and changes in production phasing.
During the quarter, ITV Studios delivered several high-profile productions for platforms like Netflix, Prime Video, ITV, and the BBC. CEO Carolyn McCall expressed optimism about the company’s growth prospects, noting that ITV Studios is on track to achieve good revenue growth for the full year.
On the Media & Entertainment front, ITVX’s streaming service continued to perform well, with total streaming hours up 12% and monthly active users meeting expectations. Digital advertising revenue also saw a significant increase of 15%, outperforming the broader advertising market.
However, total M&E revenue declined by 3% to $650 million, with total advertising revenue down 2% as forecasted. Despite this, ITV maintained its strong position in delivering mass reach for advertisers through its linear television channels.
Looking ahead, ITV expects a 14% decline in Q2 total advertising revenue compared to 2024, due to tough comparisons against the previous year’s events. Despite this, the company remains confident in its strategic initiatives and diversified revenue streams to navigate the evolving market landscape successfully.
ITV recently completed a share buyback and acquired a majority stake in Moonage Pictures, a fast-growing independent producer of high-end drama. The company’s upcoming programming slate includes the Women’s Euros, new entertainment series, and a range of new and returning dramas.
Overall, ITV is on track to deliver significant digital revenues by 2026 and remains focused on creating long-term value for its shareholders. The company’s commitment to financial discipline and cost control, along with its strong customer base, positions it well for future growth and success.
