UK network ITV is planning to save another £35M ($45.7M) in the coming quarter, despite posting steady year-to-date group revenues.
In a Q3 trading update, the broadcaster and content group said it had identified the additional temporary savings” in its Media & Entertainment division, which houses its linear networks and streamer ITVX.
“UK macro data is showing a softening economy, with increased uncertainty in the lead up to the UK Budget which is impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand,” said ITV CEO Carolyn McCall in a trading update today. “We do not anticipate these temporary savings to impact our ability to deliver our strategic plan.”
The plan is to move £20M of programming will be moved into 2026 and make an additional £15M of non-content savings, primarily through “reduced discretionary spend” and “reduced marketing spend aligned with the adjusted content slate.” The move means ITV’s total content budget for 2025 is adjusted to around £1.21B.
Overall total year-to-date group revenues for the nine months to end-September at ITV were £2.8B, up 2% from £2.74B a year ago. A strong performance at production and sales division ITV Studios was hailed for offsetting an anticipated drop of 9% in total advertising revenue.
For the full year, ITV said it was “on track to deliver good revenue growth in ITV Studios at a margin of 13-15%,” while warning the “economic outlook in the UK remains uncertain with widespread caution being exercised across business sectors ahead of the Budget in November.”
ITV Studios revenue came in at £1.35B, up 11% on the £1.22B in 2024, with external revenue up 20% thanks to demand for programs from streamers. During the quarter, ITV Studios launched the likes of The Reluctant Traveler Season 3 for Apple TV and Love Island Games for Peacock.
However, internal revenues dropped 7% due to the absence of shows such as Saturday Night Takeaway, sports production and phasing of productions.
The M&E networks arm saw total revenue fall 5% to £1.44B, though digital advertising revenue was up 15% as ITVX viewing grew total streamed hours by 14%. Overall digital revenues were up 13%.
ITV said its overall performance for the nine months to the end of September had been “better than market expectations” thanks to its long-term More Than TV strategy. Full-year revenue and margin outlooks remain unchanged.
“ITV has delivered a good performance in a tough advertising market,” said McCall. “Both our businesses are performing well, reflecting the significant transformation we have delivered. 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.”