ITV (LSE:ITV) reported broadly stable trading for the first quarter of 2026, with flat group revenue and a 1% increase in external revenue as growth in ITV Studios and digital operations helped offset continued weakness in traditional linear advertising.
Revenue at ITV Studios increased 4% during the quarter, supported by an 8% rise in external sales to global streaming platforms. Internal studio revenue declined, however, reflecting previously planned reductions in soap and daytime programming following earlier scheduling and production adjustments.
Within the Media & Entertainment division, revenue fell 2%, although digital advertising revenue increased 14% as streaming platform ITVX delivered record viewing figures. Total digital revenue rose 12%, while streaming hours increased 13% year on year.
The broadcaster also confirmed it remains in active discussions with Sky regarding a potential transaction involving the Media & Entertainment business. ITV said it continues to expect full-year performance to remain in line with guidance, supported by anticipated advertising demand linked to the men’s football World Cup and ongoing expansion across digital platforms.
The company’s broader outlook reflects a mixed financial profile, with improving revenue trends offset by weaker margins and softer cash flow performance, although leverage metrics have improved. Technical indicators remain relatively balanced, with the shares showing a modest upward trend but neutral momentum overall.
Valuation continues to provide support through a mid-range price-to-earnings ratio and an attractive dividend yield. Management commentary around ITV Studios, digital growth initiatives and cost discipline was generally constructive, though investors remain cautious regarding ongoing pressure in linear advertising markets, profitability mix challenges, weaker cash conversion and uncertainty surrounding the strategic discussions over the Media & Entertainment division.
More about ITV plc
ITV plc is a UK-based broadcasting and entertainment group operating free-to-air television channels, the ITV Studios production business and digital platforms including ITVX and advertising technology platform Planet V. The company generates revenue from television and digital advertising, content production and international licensing, maintaining a strong presence in both UK broadcasting and global media distribution.
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