ITV Reports Solid Q1 Performance With $1 Billion Revenues, Expects No Direct Tariff Impact

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ITV remains optimistic about possible U.S. trade tariffs, even as they report a robust beginning to 2025. The first-quarter financials of this UK broadcasting company are in line with predictions, despite tough market circumstances.

In their first-quarter financial report, a major British media company acknowledged evaluating the potential for trade tariffs in the United States. However, since ITV Studios exclusively creates television content, they expect no immediate effects if tariffs are imposed on movies.

The overall income from external business groups increased by 4%, reaching approximately £756 million or $1 billion. This increase was mainly due to a rise in earnings from external studios, which compensated for the drop in total advertising revenue (TAR). This strong performance demonstrates the growing variety of income sources for the company.

In the first quarter, ITV Studios experienced a 1% increase in overall revenue, amounting to $513 million. This growth was primarily driven by a 20% spike in external revenue due to high demand and strategic deliveries to global streaming platforms. However, internal revenue dropped by 26%, mainly due to the absence of shows like “Saturday Night Takeaway” and “The Tower,” as well as the different timing of production for series such as “The Bay” and “Grace” compared to last year. The strong external performance helped counterbalance this decline.

Over the past quarter, ITV Studios managed to release a number of prominent productions. These include “Run Away” for Netflix, “The Better Sister” and “The Devil’s Hour” for Prime Video, “Malpractice” for ITV, as well as popular unscripted series such as “Squid Game: The Challenge” on Netflix and “I Kissed A Boy” on the BBC.

In a positive outlook, CEO Carolyn McCall mentioned that ITV Studios has bounced back after the effects of the US strikes and is projected to see strong growth in overall earnings throughout the entire year, with a heavier emphasis on the second half, as previously predicted.

On the entertainment scene, ITVX’s streaming service maintained strong momentum, witnessing a 12% increase in total streaming hours and meeting their projected growth in monthly active users. Moreover, digital advertising earnings skyrocketed by 15%, marking a substantial outperformance compared to the broader advertising market.

Conversely, the overall M&E (Media and Entertainment) revenue dipped by 3% to reach $650 million, as anticipated in our earlier projections, with advertising revenue decreasing by 2%. Yet, the company managed to uphold its prowess in providing broad exposure for advertisers, boasting a 91% presence among the top 1,000 commercially aired TV programs and a 34.0% share of commercial viewing on its linear television platforms.

Or more briefly:

Although M&E revenue dropped by 3%, advertising revenue decreased as expected, the company maintained its strong position in delivering broad exposure for advertisers across its linear television channels.

Moving forward, ITV predicts that Quarter 2’s total advertising revenue for this year may decrease by approximately 14% compared to the year 2024. This is due to challenging comparisons with last year’s men’s European Championship, which significantly boosted ad spending. However, regarding Quarter 2 and the first half of 2025, ITV expects these periods to remain relatively stable compared to the same timeframe in 2023.

McCall continues to express optimism about the company’s direction: “Although the overall economic situation is unpredictable, we are certain that our strategic plans, our emphasis on fiscal responsibility and cost control, and our varied income sources and customer base will empower us to effectively adapt to a changing market environment and generate long-term benefits for our shareholders.

On April 4, the broadcaster concluded its $312.4 million share repurchase, acquiring a total of 322,719,975 shares. Moreover, ITV Studios recently obtained a significant controlling interest in Moonage Pictures, a rapidly expanding British producer of premium drama series, notably ‘The Gentlemen’, which has gained international acclaim.

ITV’s upcoming lineup features the rapidly growing Women’s Euros, a fresh entertainment series titled “Shark: Waters Full of Celebrities,” and returning and new dramas like “Code of Silence,” “I Challenged Authority,” and “Ridley.” The corporation is on target to generate at least $997 million in digital income by 2026.

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2025-05-15 09:52