ITV Interim Results 2026: ITVX Growth and £100 Million Buyback Support the Sky Sale Story

ITV's first-half results are less about dramatic earnings growth and more about holding the business steady ahead of a potentially transformative deal.

The broadcaster and production group reported a 2% increase in total revenue for the six months ended 30 June 2026. Group adjusted EBITA, its preferred measure of operating profit, was unchanged at £146 million.

Underneath those headline figures, the two main divisions moved in opposite directions. Media & Entertainment benefited from stronger advertising and rapid ITVX growth, while ITV Studios experienced the expected impact of a production schedule weighted towards the second half.

The bigger issue for ITV PLC investors remains the proposed sale of Media & Entertainment to Sky. ITV expects the transaction to generate a net cash return of around £950 million, excluding any contingent consideration, although regulatory approval means completion may not arrive until the second half of 2027.

ITV's first-half figures at a glance

Metric	H1 2026	H1 2025	Change
Total group revenue	£1.89 billion	£1.85 billion	2%
Group external revenue	£1.60 billion	£1.59 billion	1%
Group adjusted EBITA	£146 million	£146 million	Flat
Statutory profit before tax	£78 million	£67 million	16%
Adjusted earnings per share	2.2p	1.8p	22%
Statutory earnings per share	1.5p	1.2p	25%
Net debt	£652 million	£566 million at December 2025	£86 million higher

Adjusted EBITA means earnings before interest, tax and amortisation, with certain items removed to give management's view of underlying operating performance.

The flat group result masks a 2% increase in adjusted EBITA before the unrealised profit in stock adjustment. Statutory profit before tax rose faster, increasing 16% to £78 million, while adjusted earnings per share improved 22% to 2.2p.

These are respectable movements, but cash generation was softer. Rolling 12-month profit-to-cash conversion fell to 63% from 109%. ITV continues to expect conversion of around 80% on average over the medium term.

ITVX and advertising delivered the first-half momentum

Media & Entertainment produced the stronger divisional performance. Revenue rose 2% to £975 million and adjusted EBITA increased 37% to £48 million.

Total Advertising Revenue, commonly shortened to TAR, increased 3% during the half. The second quarter was particularly strong, with TAR rising 8% following advertising and sponsorship demand around the Men's Football World Cup.

ITVX also continued to expand:

ITVX and digital measure	H1 2026	Change
Total digital revenue	£307 million	13%
Digital advertising revenue	£268 million	13%
Streaming hours	1.42 billion	27%
Monthly active users	17.9 million	10%
UK subscribers	1.1 million	22%

This matters because digital growth helps reduce ITV's dependence on traditional television viewing and linear advertising. Crucially, management continues to expect strong and profitable digital revenue growth from ITVX and its Planet V advertising platform.

There are still pressures. Regulations covering less healthy food advertising had an estimated £20 million negative impact on first-half TAR. Marketing spending also increased to support ITV's brand campaign and new programmes.

The near-term advertising outlook is cautious too. ITV expects third-quarter TAR to decline by around 5% year-on-year, despite July benefiting from the World Cup. TAR for the first nine months is expected to be flat, reflecting what management described as macro-economic headwinds.

ITV Studios needs a strong second half

ITV Studios delivered 2% total revenue growth to £912 million, supported by higher internal revenue and growth in distribution. External revenue declined 1%, however, because of the timing of programme deliveries.

Adjusted EBITA fell 9% to £97 million, reducing the divisional margin from 12.0% to 10.6%. Lower revenue following previously announced scheduling changes to soaps and daytime productions also affected profit.

Management says this phasing was expected. Revenue, profit and margin are weighted towards the second half, particularly the fourth quarter, because several large productions and higher-margin licensing deals are scheduled for delivery.

The slate includes The Gentlemen, The Woods and SuburraMaxima for Netflix, Line of Duty series seven and Vigil series three for the BBC, Hell's Kitchen series 25 and 26 for Fox, and Guilty Creatures for Apple TV+.

For the full year, ITV still expects Studios to deliver good revenue growth ahead of the wider market. Its expected margin remains at the lower end of the 13% to 15% range due to the revenue mix.

That guidance provides reassurance, but it also creates execution risk. A substantial amount of the year's performance depends on programmes and licensing agreements landing during the closing months of 2026.

£100 million buyback starts the shareholder return early

ITV declared an unchanged interim dividend of 1.7p per share, costing around £60 million. It intends to pay a full-year ordinary dividend of at least 5.0p and expects this to grow over the medium term.

The company also announced a £100 million share buyback, expected to begin shortly and finish within nine to 12 months. ITV describes this as an early return of part of the approximately £950 million net cash return expected after completing the M&E sale.

The buyback is notable because the Sky transaction has not yet completed. It signals confidence in the group's financial position and gives shareholders a tangible return while the regulatory process continues.

ITV also achieved £13 million of permanent non-content cost savings during the half and remains on track for £20 million across 2026. These savings are helping fund investment and offset inflation.

The Sky sale remains the key event

The proposed sale of Media & Entertainment would leave shareholders owning ITV Studios as a focused global content business, while receiving a substantial cash return.

The transaction is subject to regulatory approval. The Competition and Markets Authority has started its review, and ITV expects a Public Interest Intervention Notice because the deal involves media assets. A phase two review is possible, in which case completion would probably move into the second half of 2027.

This creates a clear balance for investors. The potential cash return is significant, and the remaining Studios business has global reach, intellectual property and a visible second-half production schedule. On the other hand, completion timing is uncertain, transaction-related costs are rising and Studios must deliver on its back-end-weighted guidance.

Exceptional items are now expected to reach around £95 million in 2026, up from previous guidance of £55 million, mainly because of transaction and separation costs connected with the Sky sale.

Investors can read the original company announcement for the full financial statements and accompanying notes.

What ITV investors should watch next

ITV remains on track for its full-year guidance, supported by digital growth, cost savings and a busy Studios delivery schedule. The £100 million buyback and unchanged dividend strengthen the immediate shareholder return case.

The main tests are now straightforward: whether ITV Studios converts its strong second-half slate into the promised revenue and margin performance, how advertising holds up after the World Cup boost, and whether the Sky transaction passes regulatory scrutiny on acceptable terms.

The first-half figures keep the plan intact. Delivery in the second half, rather than the modest headline growth reported so far, will determine how convincing the full-year performance looks.