ITV (LSE:ITV) reported total group revenue up 2% for the six months to 30 June, with group adjusted EBITA (earnings before interest, tax and amortisation) flat year-on-year as growth in television advertising offset an expected decline at ITV Studios.
Adjusted earnings per share rose 22% to 2.2p, while statutory profit before tax climbed 16% to £78m.
ITV Studios revenue rose 2%, driven by a 9% increase in internal revenue, but external revenue fell 1% on the phasing of deliveries, pushing adjusted EBITA down 9% with margin at 10.6%; the broadcaster said Studios profit and margin remain weighted toward the second half, reflecting a heavy slate of high-margin licensing deals and large productions including titles for Netflix, the BBC, Fox and Apple TV+.
Media & Entertainment delivered total advertising revenue growth of 3% in the first half, with the second quarter up 8% on strong Men's Football World Cup demand; ITVX digital advertising revenue grew 13%, with viewing up 27%. M&E adjusted EBITA grew 37%.
The company estimates a £20m first-half hit to advertising revenue from less healthy food regulations introduced in October 2025.
Chief executive Carolyn McCall said the announced sale of Media & Entertainment to Sky "will unlock significant value for shareholders, with a net cash return of around £950 million."
ITV declared an unchanged interim dividend of 1.7p, around £60m, and announced a £100m share buyback as an early return ahead of the Sky deal's completion, expected in the second half of 2027 pending regulatory review.
For the third quarter, ITV expects total advertising revenue down around 5% year-on-year, with the nine months to September flat.
News Intelligence what this means for the company
ITV reiterated full-year guidance on flat H1 group EBITA, with advertising revenue up 3% offsetting a 9% Studios EBITA decline weighted to H2 deliveries. The company is pressing ahead with shareholder returns—a £100m buyback and unchanged 1.7p interim dividend—while awaiting completion of its Media & Entertainment sale to Sky in H2 2027; it also flagged a £20m H1 advertising hit from UK food regulations and expects Q3 advertising revenue down 5% year-on-year.
The H1 results show the core advertising business stabilizing (up 3% total, with ITVX digital up 13%), but near-term headwinds persist: Q3 is expected down 5%, and regulatory restrictions cost £20m in H1 alone. The Studios margin compression (down to 10.6%) is temporary and acknowledged as H2-weighted, but the path to value hinges on regulatory clearance of the Sky deal and the £950m cash return it promises—a material event still 18 months away.
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