ITV warned that advertising revenues would decline by up to 10% in the fourth quarter, triggering £30m of additional cost savings.

Total advertising revenue (TAR) at its Media & Entertainment (M&E) division, which is being sold off to Sky, is expected to fall by between 5% and 10% in the final three months of 2026, leaving full-year revenue down around 2% to 3%.

ITV blamed the weaker outlook on a combination of continued broader macroeconomic uncertainty, increased digital advertising on global streaming platforms and the impact of regulations which came into effect on 1 October 2025.

Group revenue fell 1% in the nine months to 30 September, with TAR down 1%, outperforming its broadcast competitors but slightly below previous expectations. Third-quarter advertising revenue declined 8%.

The broadcaster has identified £30m of additional temporary savings in the fourth quarter, comprising £25m of content cuts and £5m of discretionary non-content savings. Its total content budget for 2026 is expected to be around £1.2bn.

ITV CEO Carolyn McCall said: “Despite a more challenging market, we remain on track to deliver good revenue growth in ITV Studios and continued profitable digital revenue growth in Media & Entertainment (M&E) over the full year.

“ITV Studios’ performance for the first nine months, with total revenue down 1%, was in line with our expectations. As previously guided, production deliveries and licensing deals are heavily weighted to Q4 this year and despite this, we have a greater proportion of our full year Studios revenue secured than at this point last year.

"We are taking decisive action, aligning our investment with advertiser demand to deliver additional temporary content and discretionary non-content cost savings in Q4. 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.”

On the brighter side, digital operations continued to perform strongly, with streaming hours increasing 29% over the nine-month period and digital revenues rising 7%. Digital advertising revenue grew 6%, supported by continued momentum at ITVX, which recorded its highest-ever viewing during the period following the Football World Cup and strong performances from programmes including Trigger Point, Big Brother and Love Island.

ITV Studios revenue fell 1%, with internal revenue increasing 4% but external revenue declining 4% because of the timing of production deliveries and licensing deals, which are heavily weighted towards the fourth quarter. The division is expected to deliver full-year revenue growth ahead of the market, although its earnings margin is forecast to be at the lower end of its 13% to 15% target range.

The proposed £1.6bn sale of ITV's M&E business to Sky is progressing as planned, with completion still expected in the second half of 2027. The regulatory review moved forward on 4 November when the Secretary of State issued a Public Interest Intervention Notice (PIIN).

ITV added its £100m share buyback is progressing, with 116.6 million shares worth £81m repurchased by 6 November.

Shares of the FTSE 250 firm fell 3.4% to 64.50p on Wednesday.

Dan Coatsworth, head of markets at AJ Bell, said: “ITV has no problem showing reruns, but its third-quarter update won’t be one it wants to repeat. Both its broadcasting and studios arms suffered from a decline in sales, creating the equivalent of a show no one wants to watch.

“Advertising demand has weakened which often happens when companies worry about the economic backdrop. 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."

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