ITV cuts costs as it nurses hangover from last year's Euros

Times

24-07-2025

A new round of cost-cutting and scaling back in content spending has been unveiled by ITV after profits declined because it failed to repeat the boost in advertising sales from the men's Euros football tournament last year.
The UK's largest free-to-air broadcaster said that it would save an extra £15 million this year, in addition to the £30 million already identified, which would partly come from 'technology and process efficiencies', according to Chris Kennedy, its finance chief.
Projected content spending has also been lowered to £1.23 billion, from £1.25 billion, which reflected a 'rearranging' of its programming, Carolyn McCall, ITV's chief executive, said. That will include playing shows on its linear television channels and ITVX, where it had previously put more content exclusively on its streaming platform.
Merging the production of Good Morning Britain into ITN and reducing soap operas from two hours to one 'power hour' would contribute to more effective use of its content spending.
The shares rose 8p, or 10.3 per cent, to 85.5p on Thursday morning, taking the total gain since the start of this year to just over 16 per cent, or the highest level in more than two years.
Revenue continued to decline during the first six months of the year, by 3 per cent compared with a year earlier, to £1.8 billion and pre-tax profit declined by 80 per cent to £67 million, after being lifted by proceeds from the sale of its 50 per cent stake in Britbox to the BBC.
It said, however, that its performance had been stronger than expected during the first half. A 7 per cent decline in total advertising revenue compared with a year earlier, when audience numbers were boosted by the men's Euros, was less severe than the 8 per cent fall that it had expected.
'We've known about the Euros effect; it's budgeted for … We got that right,' McCall said. 'There's no doubt it's a softer market: the economic uncertainty is not helping.' An increase in national insurance contributions had been 'a real weight' on businesses, she said.
The studios business performed more strongly, its revenue having risen 3 per cent. It flagged an uplift in profits during the second half as more higher-margin shows were expected to be sold.
McCall would not be drawn on progress in any mooted talks over a potential sale of its studios business, insisting that 'everyone talks to everyone and everyone is talking to everyone' and that the board would 'keep all options under review'.
Earlier this year reports emerged that ITV had been approached about its studios by Banijay, Europe's largest production house and the company behind shows including Peaky Blinders and Big Brother. It had previously held early-stage discussions with All3Media, another production house, over a potential combination.
• French media group Banijay considers bid for ITV
ITV has been battling a decline in linear television audience numbers, which has pushed it to turn increasingly to ITVX to help to monetise its content.
Last month ITV and Disney announced a content-sharing partnership that will promote a selection of programming across each other's streaming platforms. McCall said she was open to more deals to 'explore new kinds of viewers'.
The shares rose 6.4p, or 8.2 per cent, to 83.9p.