ITV plc (LSE:ITV) reported full-year 2025 results slightly ahead of market expectations, with group external revenue rising 1% to £3.51bn while total revenue remained broadly flat. Growth in ITV Studios and digital operations helped offset a decline in traditional linear television advertising.
Adjusted EBITA slipped by 1% to £534m as weaker advertising demand weighed on performance, though £63m in permanent cost savings helped limit the impact. Adjusted earnings per share declined 11%, while net debt increased to £566m, leaving leverage at around 1.0 times.
The company’s content production arm, ITV Studios, delivered 10% growth in external revenue. The increase was driven by strong demand for content from global streaming platforms and continued monetisation of the group’s extensive programme library, although margins softened due to changes in the production mix.
Within the Media & Entertainment division, digital engagement continued to expand. Viewing on the streaming platform ITVX rose 16%, while digital advertising revenue increased 12%. However, total Media & Entertainment revenue declined 5% as lower spending in the TV advertising market weighed on the segment, despite cost reductions helping preserve profitability.
Management said around two-thirds of group revenue now comes from ITV Studios and digital Media & Entertainment activities, reflecting the company’s strategic shift away from reliance on traditional broadcast advertising. The board proposed a full-year ordinary dividend of 5.0 pence per share—approximately £190m in total—and reaffirmed its “More Than TV” transformation strategy aimed at building a more agile, digitally focused business.
ITV also confirmed it remains in discussions with Sky regarding a potential sale of the Media & Entertainment business, although no agreement has been reached and there is no certainty that a transaction will proceed.
Looking ahead to 2026, the company expects continued profitable revenue growth from ITV Studios and ITVX, along with additional permanent cost savings of about £20m. Content spending is projected at roughly £1.225bn, while advertising revenue is expected to benefit from expanded coverage of the FIFA Men’s World Cup and England rugby matches.
ITV’s outlook reflects stable financial performance and positive strategic developments, though the company continues to face challenges linked to advertising market softness and cash flow management. Valuation appears relatively balanced, supported by an attractive dividend yield, while technical indicators point to constructive share price momentum.
More about ITV plc
ITV plc is a UK-based media and entertainment group combining a major free-to-air television network with a growing digital streaming platform, ITVX, and a global production business through ITV Studios. The company produces and distributes television content and formats worldwide while generating revenue from advertising, digital subscriptions and content licensing.
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