ITV plans to cut £25 million from its fourth-quarter programming budget as a weaker U.K. advertising market puts pressure on its broadcasting business. Chief executive Carolyn McCall nevertheless said the sale of its Media & Entertainment division to Sky was advancing as expected. A further £5 million reduction in discretionary spending outside programming will bring the division’s temporary cuts to £30 million, leaving ITV’s projected content budget for 2026 at about £1.2 billion.
Sky, which is owned by Comcast, agreed in July to buy the business for £1.6 billion. The transaction includes ITV’s television channels and ITVX streaming service and would leave ITV focused on its global production operation, ITV Studios. Completion is still expected in the second half of 2027. Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice on Nov. 4, allowing the Competition and Markets Authority and Ofcom to assess the takeover and submit their findings to her. McCall described the step as an anticipated milestone.
The broadcaster forecasts that advertising revenue will fall by around 5% to 10% in the final quarter of 2026 compared with a year earlier. For the full year, it expects a decline of roughly 2% to 3%. ITV attributed the weakness to economic uncertainty, advertisers directing spending toward global streaming services and restrictions on advertising less healthy food that took effect on Oct. 1, 2025. Advertising revenue declined 1% over the nine months to Sept. 30, including an 8% fall in the third quarter. Performance exceeded rival broadcasters but fell short of ITV’s previous guidance.
Media & Entertainment revenue fell 1% to £1.43 billion. Digital revenue increased 7% to £461 million, insufficient to offset lower linear advertising income. Streaming hours climbed 29% to 2.15 billion, with ITVX recording viewing highs around the final World Cup matches and programmes including “Trigger Point,” “Big Brother” and “Love Island.” ITV aired eight of the year’s 10 most-watched series across commercial broadcasters and streaming services.
Total group revenue for the nine-month period decreased 1% to £2.76 billion. ITV Studios also recorded a 1% decline, taking revenue to £1.33 billion. Sales to ITV’s channels and streaming service grew 4%, supported by new and returning scripted and unscripted programmes that offset scheduling changes affecting soaps and daytime output. Revenue from external customers dropped 4%, while distribution income from existing titles continued to grow.
McCall said the studio’s results were consistent with expectations, with production deliveries and licensing agreements concentrated in the fourth quarter. The company had secured a larger share of its annual Studios revenue than at the same stage in 2025. ITV Studios produced five of the U.K.’s 10 most-watched third-quarter dramas, including Netflix’s “The Gentlemen” and ITV’s “The Blame,” the most-watched drama of 2026 so far.
ITV continues to expect Studios to deliver full-year revenue growth ahead of the market, although its revenue mix is likely to put the EBITA margin at the lower end of its 13% to 15% forecast range. Fourth-quarter deliveries include productions for Netflix, Peacock, Fox and the BBC, alongside high-margin licensing agreements through Global Partnerships. ITV has also completed £81 million of its £100 million share buyback programme.
