{"id":43181,"title":"ITV launches further cost cuts as advertising revenue declines","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-07-25T08:26:41+00:00","modified":"2025-07-25T08:26:41+00:00","canonical_url":"https://stockmark.it/itv-launches-further-cost-cuts-as-advertising-revenue-declines/","markdown_url":"https://stockmark.it/itv-launches-further-cost-cuts-as-advertising-revenue-declines.md","json_url":"https://stockmark.it/itv-launches-further-cost-cuts-as-advertising-revenue-declines.json","category":"Stockmarket","categories":["Stockmarket"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/1740564138886_81D7FKCE.jpg?fit=1024%2C576&quality=89&ssl=1","format":"news","language":"en-GB","content":"ITV has announced an accelerated programme of cost-cutting measures following a marked drop in profits, attributed to the failure to replicate last year’s advertising revenue boost provided by the men’s Euros football tournament. The UK’s largest free to air broadcaster said it will implement an additional £15 million in savings this year, on top of the £30 million already identified by finance chief Chris Kennedy. A significant portion of the savings will be driven by “technology and process efficiencies”.\n\nProjected spending on content for this year has been revised downward to £1.23 billion from the previously planned £1.25 billion. This adjustment is described as a “rearranging” of programming by chief executive Carolyn McCall, with certain shows now set to air on both traditional linear channels and the ITVX streaming platform, instead of remaining exclusive to digital audiences. Strategic changes such as merging the production of Good Morning Britain into ITN and reducing soap opera broadcast times to a single “power hour” are expected to further optimise spending.\n\nDespite these constraints, ITV’s share price experienced a notable uptick, rising 13.3 per cent to 87.75 pence by the close of trading. The cumulative gain since the start of the year now stands just above 19 per cent, marking the highest level in over two years.\n\nRevenue over the first half of the year declined 3 per cent compared with the previous year, falling to £1.8 billion. Pre-tax profit suffered a sharp drop, down 80 per cent to £67 million, a figure previously buoyed by the sale of ITV’s 50 per cent stake in Britbox to the BBC. McCall noted that while these results are impacted by last year’s exceptional sporting event, the overall performance had surpassed expectations set for the first half. Advertising revenue specifically fell 7 per cent, a softer decline than anticipated.\n\nThe economic environment, including heightened national insurance contributions, was cited by McCall as posing ongoing challenges to profitability. However, ITV Studios offered a rare bright spot, recording a 3 per cent increase in revenue. The group has also flagged an expected rise in profits for the second half of the year, linked to the sale of higher margin shows.\n\nITV has neither confirmed nor denied ongoing talks relating to the possible sale of its studios business, with McCall stating that discussions are fluid and all options continue to be assessed. Reports have emerged linking ITV to Banijay, the owner of prominent entertainment formats, in addition to previous discussions with All3Media over a potential tie up.\n\nFaced with a continuing decline in linear television audiences, ITV has intensified its focus on ITVX to diversify revenue streams. Early July saw the announcement of a content sharing agreement between ITV and Disney, broadening the reach of their respective programming. McCall confirmed that the broadcaster remains open to further partnerships in order to tap into new audience demographics and maximise asset value in a changing market."}