Commercial broadcaster ITV reiterated its full-year guidance and announced a £100m share buyback ahead of the sale of its Media & Entertainment (M&E) business to Sky.

Revenue at ITV Studios, which is expected to become a separately listed company after the sale of M&E to Sky, rose 2%. The broadcaster said it remains on track to deliver good revenue growth at Studios for the full year, with margins expected at the lower end of its 13%-15% target range as revenue and profit remain weighted towards the second half, particularly Q4.

Underlying operating profit at the studios division profit fell 9%, however, partly due to the weighting of major productions and high-margin licensing deals towards the second half, alongside the previously announced reduction in soaps and daytime production.

M&E revenue rose 2% and total advertising revenue (TAR) increasing 3% in the first half, including 8% growth in the second quarter. The broadcaster estimated that restrictions on advertising less healthy food reduced first-half advertising revenue by around £20m, but underlying operating profit for the division still increased 37%. In M&E, ITVX continued its strong momentum, with viewing up 27% and digital advertising revenue rising 13%.

Total group revenue increased 2%, with external revenue up 1%.

Following the agreed sale of M&E, ITV said today's buyback announcement represents an early return of part of the expected £950m net cash proceeds from the transaction, alongside an unchanged interim dividend of 1.7 pence per share worth around £60m.

ITV CEO Carolyn McCall said: "The recently announced sale of M&E to Sky represents a substantial milestone for ITV. This transaction will unlock significant value for shareholders, with a net cash return of around £950 million, excluding any contingent consideration, and continued ownership of an attractive, growing global content business in ITV Studios. Underpinned by its world class talent, global scale and unique IP library, ITV Studios is well positioned to deliver above-market profitable organic revenue growth at industry leading margins, strong cash generation, attractive returns to shareholders and an investment grade balance sheet."

She added: "Reflecting our commitment to attractive shareholder returns, the Board has declared an interim dividend of 1.7p, a total of around £60 million, unchanged on prior year. In addition, we are today announcing a £100 million share buyback. This represents an early return of part of the previously announced £950 million net cash return expected on completion of the sale of M&E."

The Sky transaction remains subject to regulatory approval and is expected to complete in the second half of 2027 if it proceeds to a Phase 2 CMA review.

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