ITV backs full-year expectations amid 'uncertain' UK outlook
By Michele Maatouk
Date: Thursday 06 Nov 2025
(Sharecast News) - Broadcaster ITV but backed its expectations for the year on Thursday but said total advertising revenue was set to drop 9% in the fourth quarter amid an "uncertain" UK outlook.
In an update for the nine months to the end of September, the company said its performance was ahead of market expectations as it continues to successfully execute its 'More Than TV' strategy.
Total group revenue grew 2% year-to-date, driven by ITV Studios and digital advertising, which saw revenues rise 11% and 15%, respectively.
Total advertising revenue (TAR) was flat in the third quarter, ahead of guidance, and down 5% YTD against a strong advertising performance in 2024, driven by the Men's Euros.
TAR for the nine-month period was flat versus 2023.
For the full year, ITV said it was on track deliver good revenue growth in ITV Studios at a margin of 13-15%.
However, it warned over the "uncertain" economic outlook in the UK and pointed to widespread caution across business sectors ahead of the Budget later in the month.
"This is impacting demand for advertising throughout the industry in Q4, with ITV TAR expected to be down around 9% in the quarter," it said. "In response to this current reduction in advertising demand, we have identified £35m of additional temporary savings in Media & Entertainment (M&E) in Q4."
ITV said these savings align its M&E cost base with the softer advertising demand being seen in Q4 and will largely offset the expected drop in TAR.
Chief executive Carolyn McCall said: "ITV has delivered a good performance in a tough advertising market. 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.
"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. 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."
At 1045 GMT, the shares were down 1.4% at 67.58p.
Russ Mould, investment director at AJ Bell, said: "Chancellor Rachel Reeves can take the blame for ITV's share price slipping on better-than-expected results, at least as far as the UK broadcast network is concerned.
"Businesses are fed up with uncertainty around the Budget and the lack of clear guidance over whether taxes will go up or not. This is having a negative impact on money spent internally such as delaying decisions on hiring or holding off from expanding facilities. Companies are reluctant to spend money if they suddenly find their cost base changes once again.
"That uncertainty has spread to promoting products - businesses recognise the outlook for consumers is also cloudy, and so they're being more cautious about spending on advertising until the Budget happens. Naturally, that's terrible news for ITV, which has guided for weaker advertising demand in the fourth quarter, citing the Budget as the key factor."
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