No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - ITV said on Wednesday that it has identified another £30m of additional temporary savings in the media and entertainment division as it cautioned that advertising revenue would fall up to 10% in the fourth quarter.
The broadcaster said group revenue dipped 1% in the nine months to September end, with advertising revenue down 1%, outperforming the company's competitors but slightly below previous guidance due to macroeconomic uncertainty.
For the third quarter, total advertising revenue fell 8%.
ITV also warned that total advertising revenue for its media & entertainment business would fall between 5% and 10% in the fourth quarter and be down around 2% to 3% for the full year.
Chief executive Carolyn McCall said: "Demand for advertising in H2 has weakened. This is due to continuing broader macroeconomic uncertainty, increased digital advertising on global streaming platforms and the impact of Less Healthy Food regulations which came into effect on 1 October 2025. We are taking decisive action, aligning our investment with advertiser demand to deliver additional temporary content and discretionary non-content cost savings in Q4."
ITV said on Wednesday that it has identified £30m of additional temporary savings in the media and entertainment segment in the fourth quarter. This comprises £25m of content savings and £5m of discretionary non-content savings.
"While the outlook for advertising remains muted, we are firmly focused on self-help and mitigating actions, while continuing to execute our strategic priorities to drive performance across both businesses," said McCall.
The broadcaster added that the agreed £1.6bn sale of its M&E business to Sky was progressing as planned.
At 1337 GMT, the shares were down 3.3% at 64.60p.
Dan Coatsworth, head of markets at AJ Bell, said: "Advertising demand has weakened which often happens when companies worry about the economic backdrop.
"The prospect of a new cost of living crisis might have encouraged companies to dial down advertising spend, for fear that consumers might not be feeling flush enough to buy their products and services.
"It also doesn't help that all the big streaming platforms like Netflix, Amazon Prime Video and Disney Plus are now full of advertisements, meaning ITV is competing against these giants for a slice of the advertising pie.
"ITV's sale of its media and entertainment arm, essentially the broadcasting and advertising business, can't come soon enough. The deal will leave ITV with its production arm, which has traditionally been a reliable earner. The third quarter was an exception, although timing was largely to blame.
"Several projects and licensing deals are weighted towards the fourth quarter, meaning Studios' performance looked weaker because of when revenue is recognised.
"The picture is on the blink for ITV, but the company seems confident of bouncing back."
See latest RNS on Sharecast