The company said it expected total advertising revenue to decline by between 5% and 10% during the final three months of the year. It also forecast a reduction of approximately 2% to 3% for the full year, a weaker outlook than analysts had anticipated.
The warning reflects a difficult trading environment for broadcasters, which depend heavily on advertising expenditure from businesses seeking to reach consumers through television and digital platforms. When companies become more cautious about marketing budgets, media organisations can experience lower advertising bookings and reduced pricing power.
Analysts had expected ITV’s fourth-quarter advertising revenue to fall by an average of 1.8%, considerably less than the company’s latest forecast. The updated outlook therefore points to a more pronounced deterioration in demand during an important period for the broadcaster.
ITV reported that total revenue for the first nine months of the year fell by 1% to £2.76 billion. Advertising revenue declined by 1% over the same period, while third-quarter advertising revenue was down 8% year on year.
In response to the weaker outlook, ITV identified an additional £30 million in temporary cost savings for the fourth quarter. This includes £25 million in content-related savings, indicating that the company is adjusting expenditure to reflect the softer advertising environment.
Despite the pressure on its broadcasting business, ITV said it expected its production division, ITV Studios, to deliver good revenue growth for the full year, supported by external sales. The company also maintained its expectation of continued profitable digital revenue growth within its Media & Entertainment division.
Chief Executive Carolyn McCall said the business remained on track to deliver growth in ITV Studios and its digital operations despite more challenging market conditions.
The outlook comes as broadcasters face structural changes in the media industry, including competition from streaming platforms, shifts in audience behaviour and the increasing use of digital advertising channels. These changes are placing pressure on traditional television businesses to diversify revenue and improve the commercial performance of their content.
ITV has also agreed to sell its channels and streaming business to Sky, adding a further strategic dimension to the company’s evolving position in the media market.
For the wider broadcasting sector, ITV’s forecast provides another indication of the sensitivity of advertising-led businesses to economic conditions. Maintaining profitability will require disciplined cost management, stronger digital revenues and continued demand for commercially successful content.
