ITV is set to broadcast more repeat programming this Christmas as it slashes its content budget by £25 million in an effort to save a total of £30 million over the last three months of the year. The cost-cutting measures are a direct response to a decline in advertising revenues.
Around £25 million of the targeted savings will come from content, which may involve postponing the release of new shows until next year and increasing the number of reruns. However, flagship programs like "I’m A Celebrity… Get Me Out of Here!," ITV soaps such as "Coronation Street" and "Emmerdale," and rugby coverage are expected to proceed as scheduled. Smaller, newer productions are more likely to be affected, with daytime quiz show repeats potentially filling the gaps.
ITV Chief Executive Dame Carolyn McCall stated that the company is implementing "decisive action" after advertising revenues fell by 8% in the third quarter. With fourth-quarter ad revenues projected to be down by as much as 10%, analysts suggest this situation highlights the rationale behind ITV's proposed £1.6 billion sale of its media and entertainment division to Sky. Duncan Ferris, an analyst at Freetrade, noted that the ad revenue decline was steeper than anticipated, reinforcing ITV's desire to divest its TV channels and reduce exposure to the struggling TV advertising market. He added that advertisers are facing financial pressures and are increasingly shifting their focus to digital platforms, making the linear television environment challenging.
The potential sale to Sky, which includes the ITV channel and the streaming platform ITVX, faced a significant hurdle last week when Culture Secretary Lisa Nandy ordered investigations by regulator Ofcom and the Competition and Markets Authority. McCall characterized Nandy's intervention as an "expected and important milestone" in the regulatory review, maintaining an expectation for the deal's completion in the second half of 2027. Should the sale proceed, ITV would focus on its Studios division, known for producing popular dramas like "The Gentleman" for Netflix and "Vigil" for the BBC, as well as ITV's own "The Blame" and "I’m A Celebrity."
Overall group revenues for the nine months ending September 30 decreased by 1% to £2.76 billion. Both the media and entertainment division and ITV Studios saw revenues fall by 1%, to £1.43 billion and £1.33 billion, respectively. ITV shares experienced a nearly 4% drop in afternoon trading following the announcement.
McCall attributed the weakening advertising demand in the second half of the year to ongoing macroeconomic uncertainty, increased digital advertising on global streaming platforms, and the implementation of new regulations on less healthy food advertising, which took effect on October 1, 2025. "We are taking decisive action, aligning our investment with advertiser demand to deliver additional temporary content and discretionary non-content cost savings in the fourth quarter," she said, emphasizing a focus on "self-help and mitigating actions" amidst a muted advertising outlook.
Dan Coatsworth, head of markets at AJ Bell, commented that while ITV is accustomed to showing reruns, its latest financial update is unlikely to be well-received. He noted that declines in sales for both the broadcasting and studios arms created a negative financial picture. Coatsworth echoed the sentiment that ITV's sale of its media and entertainment business cannot happen soon enough.