ITV Q1 revenue matches guidance; ad forecast weighs on shares

Published 15/05/2025, 09:54
© Reuters.

Investing.com -- Shares of ITV (LON:ITV) fell more than 2% on Thursday after the company reported first-quarter results that were broadly in line with expectations, with total revenue down 1% to £875 million and advertising revenue flat through the first four months of the year.

Total (EPA:TTEF) advertising revenue declined 2% in the first quarter and was unchanged from a year earlier for the January to April period. 

The company said the second quarter is expected to show a 14% year-on-year decline in total advertising revenue, slightly below external forecasts.

ITV ’s digital performance continued to show growth, with streaming hours up 12% year-on-year and digital advertising revenue increasing 10%.

ITVX digital advertising rose 15%, ahead of broader market trends. Monthly active users grew in line with internal targets.

Media & Entertainment revenue for the first quarter totaled £489 million, and total advertising revenue in the segment reached £423 million, both in line with analyst forecasts. The company maintained its previous guidance for the full year.

ITV Studios returned to growth following production delays caused by last year’s writers’ and actors’ strikes in the United States. 

External revenue from the studios business rose 20% year-on-year, outperforming market estimates. 

Total studios revenue grew 1%, held back by a 26% decline in internal revenue due to programming phasing. 

ITV said there is no change to its full-year expectations for the studios unit, which remains weighted toward the second half.

Total group external revenue rose 4% compared to a year earlier, three percentage points ahead of consensus. 

The company said £30 million in non-content cost savings remain on track for delivery in 2025.

Analysts at Morgan Stanley (NYSE:MS) project full-year external revenue of £3.63 billion, adjusted EBITA of £535 million and earnings per share of 9.3p, slightly ahead of consensus estimates.

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