ITV plc

Reported H1 figures included total Studios revenue of GBP 912 million, up 2% or 3% on an organic basis, with Studios EBITA down 9% to GBP 97 million and a margin of 11%. In M&E, total advertising revenue was GBP 850 million, up 3%, and digital revenues grew 13% to GBP 307 million; ITVX viewing was up 27%, and June was the first month with over 20 million monthly active users. Group EBITA was flat. The company ended the period with net debt of GBP 652 million, leverage of 1x, and profit-to-cash conversion of 63%. Guidance was unchanged: good total revenue growth for Studios, margins at the lower end of the 13%-15% target range, continued strong profitable digital revenue growth in M&E, Q3 TAR expected down around 5% implying flat TAR for the first nine months, and GBP 20 million of cost savings for the full year.

Carolyn McCall framed the period as a solid first half and emphasized that the Sky transaction is transformative because it unlocks value in ITV Studios and returns cash to shareholders. She repeatedly highlighted the strength of ITV Studios’ pipeline, the role of IP and digital distribution, and ITVX’s momentum as viewers shift toward streaming. Her tone was confident but practical, with a focus on disciplined execution, regulatory process management, and maintaining attractive shareholder returns.

Chris Kennedy led with the key financials: Studios revenue of GBP 912 million, EBITA of GBP 97 million, M&E advertising revenue of GBP 850 million, digital revenue of GBP 307 million, net debt of GBP 652 million, leverage of 1x, and cash conversion of 63%. He said content costs were down 2% despite the World Cup, excluding marketing non-content costs were up 3%, and GBP 4 million of permanent savings had been delivered so far this year. He also noted that the company remains on track for GBP 20 million of cost savings in the full year and that exceptional costs now include a credit for a legal settlement plus transaction and separation costs tied to the M&E sale.

Analysts focused on why ITVX revenue growth lagged viewing growth, whether rising digital video supply from competitors is pressuring pricing, how Studios can sustain mid-single-digit growth, and the timing of the GBP 100 million buyback. Management said ITVX advertising is managed through ad load and yield, with inventory sold at a fixed price plus premium targeting, and stressed that CPMs remain high because ITVX inventory is only sold through Planet V. On Studios, management pointed to growth from streamers, unscripted formats, and digital initiatives such as Zoo 55 and Studio 55, while saying the CMD should clarify the mix between price, volume, and share. The buyback is expected to take nine to 12 months.