ITV FY 2025 results: Revenue flat as Studios remains strong

Comcast/Sky is in preliminary discussions to acquire ITV’s broadcast and streaming operations. With a larger audience footprint, better tech and a broader range of British content, the rationale is that the merged entity would be better placed to compete with global streaming giants.

The belief will be that the downward momentum of both parties will be slowed, and the offering is more likely to be a primary viewing choice. There is a danger that ITV may lose some of its unique identity.

The deal will need to clear regulatory hurdles including concerns on media plurality. The harder test will be convincing the CMA that the relevant advertising market is wider than just broadcasters.

ITV's advertising revenue held broadly flat YoY in Q3, but remains 5% down across 2025 (£1,247 million  v. 1,313 million). This was more than balanced by the back-end weighted revenues of Studios: now well up on 2024 (£1,350 million v. £1,217 million) 

A very challenging Q4 awaits: pre-budget economic and consumer uncertainty could lead to TAR down 6% across 2025. Digital remains a bright spot

As a whole, the viewing mix of ITV is increasingly dictated by ITVX: going forward, this will mean proportionally less viewing of news and more of drama, including that which is foreign-produced 

With no major men’s football tournament, ITV’s advertising revenue fell well short of a tough YoY comparison (-7%, £824 million) while Studios appears to be settling after a demanding last couple of years (+3%, £893 million)

ITVX is showing encouraging momentum—especially in terms of its usage profile—however, as a whole, ITV saw viewing share again decline, while losing another 600k regular-viewing households

This market demands proactivity—hence the announcement of collaboration between the three major sale houses, and further measures by ITV to target small to medium-sized businesses

ITV's total external revenue rose 4% year-on-year in Q1 (to £756 million), although a material drop in internal Studios sales (down by £41 million) meant a decline in total group revenue (-1% to £875 million). Ad revenue was down 2% and will face tough men's Euros comparisons for the next two quarters 

Even with continuing online growth, ITV's overall viewing continues to decline. However, ITVX usage is displaying favourable characteristics that could foretell greater resilience and volume

Further, although the levels of viewing on the ad-tiers of the major SVOD services is analogous to ITVX, the difference in how well that viewing is monetised is stark