ITV (ITV) H2 2025 earnings summary

Executive summary

• Outperformed market expectations in 2025, reflecting successful transformation into a leaner, more agile business with a strong digital platform and two resilient segments: Studios and Media & Entertainment (M&E).

• Achieved strategic target: two-thirds of total revenue now from Studios and digital businesses, highlighting diversification.

• Diversified revenue streams and disciplined cost management offset linear advertising decline.

• Created two resilient business segments: ITV Studios and M&E.

• Proposed final dividend of 3.3p, maintaining a full-year dividend of 5p (GBP 190 million total).

Financial highlights

• ITV Studios revenue up 5% to GBP 2.13 billion; external revenue up 10%.

• Digital advertising revenue up 12% to GBP 540 million; total digital revenues up 10% to GBP 614 million.

• Total advertising revenue fell 5%, outperforming guidance.

• Adjusted EBITDA for Studios: GBP 297 million; margin 13.9%.

• Net debt at year-end: GBP 566 million; leverage ratio 1x.

Outlook and guidance

• Studios expected to show good revenue growth in 2026, with margin at lower end of target range.

• Revenue, profit, and margin to be weighted to H2; momentum expected into 2027.

• Digital revenue in M&E predicted to continue strong growth in 2026, driven by ITVX and new digital opportunities.

• Q1 2026 TAR expected down ~2%, better than anticipated; profit-to-cash conversion expected at ~80% medium term.

• Major sports events (FIFA World Cup, Rugby Nations Championship) to boost ad revenue from Q2.