U.K. media giant ITV posted a 31% drop in group adjusted EBITA (Earnings before interest, taxes, and amortization) for the first half of 2025, coming in at £146 million ($198 million), down from £213 million ($289 million) a year earlier.
The fall was driven by tough year-on-year comparisons against a Euros-boosted 2024 and a shifting mix in its Studios business, though executives stressed that the group’s transformation strategy remains on track.
Total external revenue for the half dipped 1% to £1.59 billion ($2.16 billion), with total group revenue down 3% to £1.85 billion ($2.51 billion), according to interim results released Thursday.
Despite the drop, ITV CEO Carolyn McCall said the broadcaster is “a leaner, more digital business in a strong position to compete,” citing double-digit growth in digital advertising and strong cash generation. ITVX, its ad-supported streaming platform, recorded a 12% year-on-year increase in digital ad revenues, as streaming hours surged 15% and monthly active users rose to 16.4 million.
ITV Studios grew external revenue 11% to £632 million ($857 million), delivering new scripted titles for Prime Video (“The Devil’s Hour”), Netflix (“Run Away”), and Peacock (“Love Island USA”). However, internal revenue dropped due to the absence of last year’s high-profile programming like “Saturday Night Takeaway” and men’s Euros soccer tournament coverage. Studios’ overall EBITA fell 21% to £107 million ($145 million), with profit and margin weighted toward the second half.
In Media & Entertainment (M&E), total advertising revenue fell 7% to £824 million ($1.12 billion), though digital gains helped limit the damage. Subscription and partnership revenues also dipped, contributing to an 8% fall in overall M&E revenue to £955 million ($1.3 billion). M&E EBITA plunged 54% to £35 million ($47.5 million), partially cushioned by lower content spend and £23 million in cost savings.
McCall pointed to ITV’s expanding digital footprint and upcoming slate — including “Cold Water,” “Trigger Point,” and “Big Brother” — as key drivers for the second half. ITVX now hosts over 26,000 hours of content, including new partnerships with YouTube and Disney+ aimed at reaching younger and broader audiences.
The broadcaster declared an interim dividend of 1.7p per share, in line with last year, amounting to around £60 million ($81.5 million), and reiterated its commitment to a full-year ordinary dividend of at least 5p.
Cost-cutting remains central to ITV’s forward strategy. The company announced an additional £15 million ($20.36 million) in non-content savings, bringing the 2025 total to £45 million ($61 million), though achieving this will incur a £40 million ($54.3 million) one-off cost. Exceptional costs for the full year are now expected to hit £100 million ($135.7 million), more than double earlier guidance, due to transformation-related spending and M&A-linked expenses.
Net debt stood at £586 million ($796 million) at the end of June, up from £515 million at the same point last year. Profit to cash conversion hit 109% on a 12-month rolling basis, with free cash flow for H1 at £43 million ($58 million).
Despite continued uncertainty in the macro environment, ITV said it remains confident in achieving good full-year revenue growth in both Studios and ITVX, with margins improving in the second half. “We are on track to deliver our 2026 key financial targets,” said McCall, “coupled with strategic cost management as we reshape our cost base to reflect the dynamics of the industry in which we operate.”
