ITV Reports Solid Q1 Performance, Expects No Direct Tariff Impact
ITV Reports Strong Start to 2025 Despite Challenging Market Conditions
ITV has started the year on a positive note, with its Q1 results meeting expectations despite facing challenging market conditions. The British broadcaster remains confident about its outlook, especially regarding potential U.S. trade tariffs.
In its Q1 trading update, ITV highlighted that it is evaluating the impact of trade tariffs in the U.S. However, the company’s focus on TV programming through ITV Studios means it does not anticipate any direct impact from tariffs on films.
Total external Group revenue saw a 4% increase to £756 million, driven by growth in external Studios revenue which offset a decline in total advertising revenue. This performance reflects ITV’s diversified revenue streams.
ITV Studios reported a 1% revenue growth in Q1, reaching $513 million. External revenue surged by 20%, thanks to strong demand from global streaming platforms. This growth helped offset a 26% decline in internal revenue due to the non-return of certain programs and differences in production phasing.
During the quarter, ITV Studios delivered several high-profile productions for platforms like Netflix, Prime Video, ITV, and the BBC. CEO Carolyn McCall expressed optimism about ITV Studios’ growth trajectory and the company’s overall revenue outlook for the year.
On the Media & Entertainment front, ITVX’s streaming service continued to perform well, with total streaming hours up 12% and monthly active users meeting expectations. Digital advertising revenue also saw a significant 15% increase, outperforming the broader advertising market.
However, total M&E revenue declined by 3% to $650 million, with total advertising revenue down by 2% as forecasted. ITV maintained its strength in delivering mass reach for advertisers through its linear television channels.
Looking ahead, ITV expects a 14% decline in Q2 total advertising revenue compared to 2024, reflecting tough comparisons from the previous year. Despite this, the company remains confident in its strategic initiatives and diversified revenue base.
ITV recently completed a $312.4 million share buyback and acquired a majority stake in Moonage Pictures, a leading independent producer of high-end drama. The broadcaster’s upcoming programming slate includes the Women’s Euros, new entertainment series, and a range of new and returning dramas.
Overall, ITV is on track to deliver significant digital revenues by 2026 and remains focused on navigating the evolving market landscape to deliver long-term value to shareholders. With a strong start to the year, ITV is well-positioned for continued success in 2025.
