ITV PLC on Thursday said first-quarter performance was in line with expectations despite ongoing weakness in the advertising market.
The London-based broadcaster said total revenue was down 1.4% at £875 million in the three months to March 31 from £887 million a year prior.
Total external group revenue was up 4.0% at £756 million from £727 million with growth in external Studios revenue more than offsetting the decline in total advertising revenue.
Total ITV Studios revenue was up 1.0% to £386 million from £382 million, with a 20% rise in external revenue helping offset a 26% decline in internal revenue.
Media & Entertainment revenue was down 3.2% at £489 million from £505 million.
Advertising revenue fell 2.1% to £423 million in the quarter from £432 million a year ago.
But ITV warned advertising revenue is expected to be down around 14% in the second quarter and down around 8% in the first-half against the strong comparatives resulting from the men’s European football championships in 2024.
Compared to 2023, advertising revenue is expected to be broadly flat.
The firm’s streaming service ITVX reported 15% growth in digital advertising revenue, with streaming hours up 12%.
The company said its 2025 outlook for ITV Studios remains unchanged. It continues to expect good revenue growth, faster than the global content market, driven by external revenue.
Revenue, profit and margin will be weighted to the second-half, with the second half margin being higher than the first half, due to the timing of cost savings.
Full-year margin will be lower than 2024, reflecting the change in sales mix, as the market recovers following the US strikes, but still within the 13% to 15% target range, ITV said.
In 2024, ITV Studios reported a margin of 14.7%.
In Media & Entertainment, ITV expects to see continued strong growth in digital advertising revenues and remains on track to deliver at least £750 million of digital revenues by 2026.
In addition, ITV said it is on track to deliver £30 million of non-content cost savings over the full year.
Shares in ITV were 1.9% lower at 77.50 pence each in London on Thursday.
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