ITV is maintaining a confident outlook regarding potential U.S. trade tariffs while reporting a solid start to 2025, with the British broadcaster’s Q1 results aligning with expectations despite challenging market conditions.
The U.K. media giant noted in its Q1 trading update that while it “continues to assess the possibility of trade tariffs in the U.S.,” ITV Studios “only produces TV programming and therefore do not anticipate any direct impact from the imposition of tariffs on films.”
Total external Group revenue rose 4% to £756 million ($1 billion), with growth in external Studios revenue more than offsetting the decline in total advertising revenue (TAR). This performance reflects the company’s increasingly diversified revenue streams.
ITV Studios delivered 1% revenue growth in Q1, reaching $513 million, with external revenue surging 20% thanks to “strong demand from, and the timing of deliveries to, global streaming platforms.” This robust external performance helped offset a 26% decline in internal revenue, which was impacted by “the non-return of ‘Saturday Night Takeaway’ and ‘The Tower,’ and the year-on-year difference in phasing of production of programs such as ‘The Bay’ and ‘Grace.’”
During the quarter, ITV Studios delivered several high-profile productions including “Run Away” for Netflix, “The Better Sister” and “The Devil’s Hour” for Prime Video, “Malpractice” for ITV, and unscripted hits like “Squid Game: The Challenge” for Netflix and “I Kissed A Boy” for the BBC.
CEO Carolyn McCall struck an optimistic tone, stating: “ITV Studios returned to growth following the impact of the US strikes and is on course to achieve good growth in total revenues over the full year, weighted towards H2 as previously guided.”
On the Media & Entertainment front, ITVX’s streaming service continued its robust performance with total streaming hours up 12% and monthly active users growing in line with the company’s expectations. Digital advertising revenue surged 15%, significantly outperforming the broader advertising market.
However, total M&E revenue declined 3% to $650 million, with total advertising revenue down 2% as previously forecasted. The company maintained its strength in delivering mass reach for advertisers, with “91% of the top 1,000 commercially broadcast TV programs and 34.0% share of commercial viewing” on its linear television channels.
Looking ahead, ITV warned that Q2 total advertising revenue is expected to fall around 14% compared to 2024, reflecting tough comparisons against last year’s men’s European Championship, which drove substantial ad spending. However, compared to 2023, Q2 and H1 2025 TAR are expected to be “broadly flat year on year.”
McCall remains upbeat about the company’s trajectory: “While the macroeconomic environment is uncertain, we remain confident that our strategic initiatives, our focus on financial and cost discipline and our diversified revenue and customer base will enable us to successfully navigate an evolving market landscape and deliver long-term value to our shareholders.”
The broadcaster completed its $312.4 million share buyback on April 4, with 322,719,975 shares repurchased. Additionally, ITV Studios acquired a majority stake in Moonage Pictures, “one of the U.K.’s fastest growing independent producers of high-end drama, including global hit ‘The Gentlemen.’”
ITV’s upcoming programming slate includes the increasingly popular Women’s Euros, new entertainment series “Shark: Celebrity Infested Waters,” and new and returning dramas such as “Code of Silence,” “I Fought The Law,” and “Ridley.” The company remains on track to deliver at least $997 million of digital revenues by 2026.
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