ITV plc

Total Studios revenue rose 2% to GBP 912 million, or 3% organic, while Studios EBITA fell 9% to GBP 97 million with an 11% margin. In M&E, total advertising revenue was GBP 850 million, up 3% year-on-year, digital revenue grew 13% to GBP 307 million, and M&E EBITA rose 37% to GBP 48 million. ITVX viewing increased 27% in H1, June was the first month above 20 million monthly active users, content costs fell 2%, and the group ended H1 with net debt of GBP 652 million and leverage of 1x; profit-to-cash conversion was 63%. For the full year, management kept guidance unchanged: Studios should deliver good total revenue growth with margins at the lower end of the 13%-15% range, M&E should continue strong profitable digital growth, Q3 TAR is expected to be down around 5%, and nine-month TAR is expected to be flat year-on-year.

Carolyn McCall framed the quarter as a solid first half and emphasized that the Sky transaction is a transformative moment that unlocks value in ITV Studios and supports major shareholder returns. Her message centered on strategic focus: expanding Studios, supercharging streaming, and optimizing broadcast, with confidence in the Studios pipeline and continued momentum in ITVX. Her tone was upbeat but measured, repeatedly noting visibility in Studios and acknowledging regulatory and macro uncertainty around M&E.

Chris Kennedy emphasized the hard numbers behind the half: Studios revenue of GBP 912 million, Studios EBITA of GBP 97 million at an 11% margin, M&E advertising revenue of GBP 850 million, and M&E digital revenue of GBP 307 million. He said the balance sheet remains strong with net debt of GBP 652 million, leverage of 1x, and profit-to-cash conversion of 63%, noting working capital was elevated because of the H2 weighting of Studios and commissioning in M&E. He also reiterated cost discipline, saying content costs were down 2%, permanent savings totaled GBP 4 million so far this year, and ITV remains on track for GBP 20 million of full-year cost savings.

Analysts focused on why ITVX revenue growth lagged viewing growth, whether digital ad inventory is becoming more competitive, how Studios can sustain mid-single-digit growth, and how long the GBP 100 million buyback will take. Management said ITVX pricing is controlled through ad load and premium targeting, that ITVX inventory is sold through Planet V with high CPMs, and that the business intentionally manages supply-demand balance rather than chasing cheap inventory. On Studios, they pointed to growth from streamers, unscripted formats, and digital monetization via Zoo 55, while saying the buyback should take nine to 12 months depending on liquidity. A second analyst pressed on weak-looking Q3 M&E trends; management blamed macro uncertainty, a new U.K. prime minister, and World Cup-related timing shifts, while saying it is too early to judge Q4 and that they have not announced additional savings.