First-half revenue rose 1% to £1.6bn (£1.6bn expected), with both its Studios and Media & Entertainment (M&E) businesses contributing evenly to growth.
Adjusted cash profit (EBITA) rose 2% to £145mn (£148mn expected). This was driven by double-digit profit growth in M&E due to strong advertising momentum, which more than offset a 9% decline in Studio profits due to an unfavourable revenue mix.
Free cash flow fell by £3mn to £40mn, while net debt rose by £0.1bn to £0.7bn over the first half.
In the third quarter, M&E total advertising revenue is expected to decline by around 5%. Studios is still expected to deliver “good” revenue growth over the full year, ahead of the broader market, with underlying cash profit margins at the lower end of its 13-15% target range.
The board announced a new £100mn share buyback programme and an interim dividend of 1.7p per share, in line with 2025.
The shares were broadly flat in early trading.
Our view
HL view to follow.
ITV key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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