Business · Companies · 46 mins ago
ITV to cut £30m in costs as advertising demand weakens
ITV plans to cut £30 million in costs from its media and entertainment division by the end of the year.
The company says advertising demand has weakened, with revenue down 8% in the quarter to September and expected to fall by 5% to 10% in the final quarter.
It expects advertising revenue to fall 2% to 3% across 2026, citing economic uncertainty, competition from streaming platforms and restrictions on less healthy food advertising.
About £25 million will come from content savings, including delaying some programmes, and £5 million from other discretionary savings.
ITV says the cuts will not affect jobs.
The cost reductions come as Sky’s planned £1.6 billion purchase of ITV’s media and entertainment division faces a regulatory probe by the UK’s Competition and Markets Authority and Ofcom.
The regulators are due to report back to Culture Secretary Lisa Nandy by 27 January, while ITV expects the deal to be completed in the second half of 2027.
ITV plans £30 million in temporary fourth-quarter cost savings as advertising demand weakens.
The cuts comprise £25 million in content savings and £5 million in discretionary non-content savings.
ITV said third-quarter advertising revenue fell 8% and forecast a full-year decline of around 2% to 3%.
The company said the cost-cutting would not affect jobs.
ITV said its planned £1.6 billion sale of its Media & Entertainment business to Sky is progressing as planned.
- Who
- ITV, the U.K. broadcaster.
- What
- It plans £30 million in temporary cost savings, including £25 million from content and £5 million from discretionary non-content spending.
- When
- The savings are planned for the fourth quarter of 2026, by the end of the year.
- Where
- The cuts apply to ITV’s Media & Entertainment division.
- Why
- Advertising demand has weakened, and ITV expects advertising revenue to fall.
This story does not have two clearly opposing sides.
ITV agreed to sell its Media & Entertainment business to Sky for £1.6 billion.
U.K. restrictions on advertising for less healthy food came into effect.
Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice on the Sky takeover.
ITV announced £30 million in temporary fourth-quarter cost savings and reported an 8% third-quarter fall in advertising revenue.
- Total planned savings
- £30 million
- Content savings
- £25 million
- Discretionary non-content savings
- £5 million
- Third-quarter advertising revenue
- Down 8%
- Full-year advertising revenue forecast
- Down around 2% to 3%
- Expected Sky deal completion
- Second half of 2027
7 sources
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What people are saying
Demand for advertising in the second half has weakened.
To align our costs with advertiser demand, we have identified £30 million of additional temporary savings in M&E in Q4.
This is an expected and important milestone in the regulatory review process, and we are pleased that it is moving at pace.