ITV (LSE:ITV) said first-quarter trading was in line with market expectations, reporting group total external revenue up 1% for the three months to 31 March and group total revenue flat year on year.
The momentum was driven by ITV Studios, which delivered total revenue growth of 4% and external revenue up 8% reflecting the phasing of deliveries to global streaming platforms, while Media & Entertainment revenue fell 2% as digital growth only partly offset softer linear advertising.
"We expect TAR to be up around 10% in Q2 and a strong July, driven by significant demand from advertisers around the Men's football World Cup," said Carolyn McCall, ITV chief executive.
Digital performance in M&E was a bright spot, with total digital revenue up 12% and digital advertising revenue up 14%, supported by a 13% increase in total streaming hours on ITVX, while M&E non-advertising revenues were down 8% as expected.
Total advertising revenue (TAR) declined 1.5% in Q1 but ITV expects TAR to be up around 4% in H1 and stronger in Q2 and July 2026.
ITV reiterated full-year guidance for good revenue growth in ITV Studios and strong profitable digital revenue growth in M&E, and said Studios margin is expected at the lower end of the 13-15% range with revenue and profits weighted to H2.
The group said it remains in active discussions with Sky about a possible sale of the M&E business and will update the market in due course.
ITV reported total liquidity of £1,368 million (cash £268 million, committed undrawn facilities £1,100 million) and net debt of £592 million at 31 March.
