ITV 2025 Results: Digital momentum offsets ad softness and beats guidance
ITV has posted a better-than-expected 2025, with digital growth and Studios resilience largely cushioning a weaker UK TV ad market. Group external revenue nudged up 1% to £3,511 million, while group adjusted EBITA slipped just 1% to £534 million despite a 5% drop in total advertising revenue (TAR). Adjusted EPS came in at 8.5p, down 11% year on year.
The Board is proposing a 5.0p full-year dividend (final 3.3p payable in May 2026), around £190 million in total. Management also confirmed they remain in discussions with Sky over a possible sale of the Media & Entertainment (M&E) business – with no certainty a deal will happen.
Key numbers investors should know
| Metric (FY 2025) | 2025 | 2024 | Change |
|---|---|---|---|
| Group total revenue | £4,121m | £4,140m | Flat |
| Group external revenue | £3,511m | £3,488m | +1% |
| ITV Studios total revenue | £2,130m | £2,038m | +5% |
| M&E total revenue | £1,991m | £2,102m | -5% |
| Total advertising revenue (TAR) | £1,723m | £1,820m | -5% |
| Total digital revenue (M&E excl. Zoo55) | £614m | £556m | +10% |
| Digital ad revenue | £540m | £482m | +12% |
| ITV Studios adjusted EBITA | £297m | £299m | -1% |
| M&E adjusted EBITA | £234m | £250m | -6% |
| Group adjusted EBITA | £534m | £542m | -1% |
| Group adjusted EBITA margin | 15.2% | 15.5% | -0.3 pts |
| Adjusted EPS | 8.5p | 9.6p | -11% |
| Statutory EPS | 5.9p | 10.4p | -43% |
| Net debt (31 Dec) | £566m | £431m | +£135m |
| Leverage (net debt / adj. EBITDA) | 1.0x | 0.7x | – |
Jargon buster: TAR is total advertising revenue across linear TV, digital and sponsorship. Adjusted EBITA is operating profit before interest, tax and amortisation, adjusted for one-offs – a cleaner view of underlying performance.
Studios: outperforming the market with streaming demand
ITV Studios delivered 5% total revenue growth to £2,130 million and reported 10% growth in external revenue, highlighting strong demand from global streaming platforms. The division continues to benefit from its scale and IP library, with double-digit revenue growth in Zoo55 as ITV monetises its content digitally.
Adjusted EBITA was broadly flat at £297 million with a 13.9% margin (down from 14.7%), reflecting mix – as guided. Notably, 28% of Studios revenue now comes from streaming platforms, up 3 percentage points, showing the pivot is working.
M&E and ITVX: digital up, linear down
The M&E division saw total revenue fall 5% to £1,991 million due to a 5% decline in TAR against a tough 2024 comparison (Men’s Euros). But under the bonnet, digital is humming: ITVX viewing hours jumped 16% to 2,304 million, monthly active users rose 12% to 16.5 million, and digital ad revenue climbed 12% to £540 million.
Subscription revenue held flat at £48 million and UK premium subscribers ended the year at 0.9 million (down 10%), but ITV says ITVX has already recouped its entire investment – four years ahead of plan. M&E adjusted EBITA fell 6% to £234 million, cushioned by significant cost savings.
Costs, cash and dividend: discipline continues
ITV delivered £63 million of permanent non-content cost savings in 2025, plus £15 million of temporary M&E savings to navigate softer Q4 ads. Cumulatively, £253 million of permanent savings have been achieved since 2019. Exceptional items totalled £107 million, mainly restructuring and corporate transaction-related costs.
Profit to cash conversion came in at 65% (down from 83%) and net debt rose to £566 million, leaving leverage at a comfortable 1.0x. The full-year dividend of 5.0p signals confidence in cash generation, aligning with policy.
2026 outlook: H2-weighted profits, football tailwind and more savings
- Studios: “another year of good growth” in 2026, with full-year adjusted EBITA margin expected at the lower end of 13%-15%. Revenue, margin and profit are H2-weighted due to scripted deliveries and high-margin licensing timing.
- M&E: continued strong, profitable digital ad growth via ITVX; non-ad digital revenues to expand further.
- Advertising set-up: Q1 2026 TAR is forecast down around 2% (better than expected). Advertisers are holding back for Q2/Q3 around the expanded Men’s Football World Cup, where ITV shows 19 more matches than in 2022 and more at peak time.
- Costs and investment: another £20 million of permanent non-content savings planned in 2026; total content spend expected around £1.225 billion; adjusted financing costs around £40 million; adjusted effective tax rate around 27%; capex around £60 million. Exceptional items expected around £55 million.
Strategic wildcard: possible M&E sale to Sky
ITV remains in discussions with Sky regarding a potential sale of the M&E business. There is no certainty a deal will happen. If it did, it would be a major reshaping of ITV – potentially sharpening the focus on Studios and licensing while crystallising value in broadcast/digital distribution. For now, treat it as optionality rather than a base case.
My read: what’s good, what’s not, and why it matters
Positives I like
- Delivered ahead of expectations despite a softer ad market – helped by £63 million of permanent savings.
- Studios growth outpaced the market, with 10% external revenue growth and rising exposure to streamers (28%).
- ITVX is clearly working: viewing +16%, MAUs +12%, digital ad +12%, and the platform has already paid back its investment early.
- Dividend held at 5.0p alongside modest leverage of 1.0x – income intact with balance sheet headroom.
Areas to watch
- Adjusted EPS fell 11% and statutory EPS 43% (the latter distorted by 2024’s BritBox International disposal gain). Sustained EPS growth still needs delivery.
- Margins eased (Studios to 13.9%, Group to 15.2%) and profit-to-cash conversion dipped to 65% – working capital discipline will be key in 2026.
- Linear TAR remains a headwind even in a better Q1 set-up; execution around the World Cup will matter.
- Subscriber decline (0.9 million, -10%) shows premium SVOD remains competitive, though ad-funded viewing is the clear engine.
Big picture: management says two-thirds of revenue now comes from ITV Studios and digital M&E – that’s the transformation story. If Studios continues to grow ahead of the market and ITVX keeps compounding ad-funded digital gains, the mix shift should support resilience and optional growth in a choppy ad cycle.
What to track next
- Q1 TAR (guide: down ~2%) and the World Cup advertising performance in Q2/Q3.
- Studios H2-weighted deliveries and licensing deals – watch margin cadence versus the 13%-15% range.
- Digital monetisation: continued double-digit growth in digital ad revenue and MAUs/streaming hours.
- Cash conversion trends and progress on the extra £20 million cost saves.
- Any update on the possible M&E transaction with Sky.
Further reading and webcast access
- Full preliminary results (FCA storage): View on FCA NSM
- Results PDF: Download the RNS PDF
- ITV results centre: ITV investor hub
- 9:00am webcast and Q&A: Register to join (UK dial-in +44 20 3936 2999, Access Code: 183046)
Overall, I’d call this a disciplined, digitally-led delivery year. Not perfect, but ahead of where many feared – and set up with sport, savings and Studios to push on in 2026.
