ITV held its ground in the first quarter, with growth at its production arm and streaming business doing the heavy lifting while linear television advertising continued to drift lower.
Group external revenue edged up 1% in the three months to 31 March, with chief executive Carolyn McCall pointing to a meaningfully better Q2 ahead.
Today’s trading update was a steady-as-you-go statement that gave little reason for major moves in shares.
Total advertising revenue is expected to rise around 10% in the second quarter, with a particularly strong July as advertisers pile in around the men’s football World Cup. For the first half overall, TAR is expected to be up roughly 4%.
ITV Studios continues to be the bright spot. The division grew total revenue 4%, but the standout number was external revenue up 8%, helped by the timing of deliveries to global streamers. Productions include Skyscraper Live for Netflix, Rivals series two for Disney+ and another run of Love Island US: Beyond the Villa for Peacock.
Media & Entertainment was the more mixed picture. Headline revenue slipped 2%, but underneath that, digital revenue grew 12% and digital advertising specifically jumped 14%. ITVX had its best-ever start to a year, with streaming hours up 13% on the back of the drama Gone, Love Island: All Stars and the Six Nations. Linear ads remain soft, and non-advertising M&E revenues were down 8% as flagged.
The continued divergence of the media and studios business underscores the opportunity for a break-up. ITV mentioned the possible sale of M&E to Sky, confirming talks are still live and promising an update in due course.
Guidance for the year is unchanged: good revenue growth at Studios, ahead of the market, with margin at the lower end of the 13–15% range and profits weighted to the second half as the bigger scripted deliveries and licensing deals land.
M&E is still expected to deliver strong, profitable digital growth, led by ITVX and the Planet V ad platform.