ITV says UK budget nerves hitting advertising spending
ITV PLC on Thursday reported revenue has improved year-to-date, though it warned of an advertising market slowdown due to UK government budget worries.
The London-based television broadcaster and content producer expects total advertising revenue in the fourth quarter to decline 9% on-year, after being flat in the third quarter. Year-to-date, it is down 5%.
‘The economic outlook in the UK remains uncertain with widespread caution being exercised across business sectors ahead of the budget in November. This is impacting demand for advertising throughout the industry in Q4,’ ITV said.
In response, ITV said it has found £35 million in temporary savings at its Media & Entertainment this quarter, to offset the expected advertising revenue decline.
In the first nine months of the year, the firm’s revenue rose 2.0% to £2.80 billion from £2.74 billion a year prior.
ITV Studios revenue was 11% higher at £1.35 billion, while M&E revenue was down 5.2% at £1.45 billion.
‘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,’ Chief Executive Carolyn McCall said.
‘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.’
ITV shares were down 1.4% to 67.55 pence each in London on Thursday morning.
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