ITV ad slump deepens amid £1.6bn Sky deal probe
ITV has warned of a sharper-than-expected slump in advertising revenue and announced £30m in fresh cost savings, as its £1.6bn sale to Sky faces a government investigation. The FTSE 250 broadcaster said on Wednesday that advertising revenue fell eight per cent in the third quarter, worse than its previous forecast of a five per cent [...]
ITV anticipates a sharper-than-anticipated decline in advertising revenue following the £1.6bn acquisition by Sky, which is currently under investigation by the government. The British broadcaster reported an eight percent drop in advertising revenue for the third quarter, surpassing its initial forecast of a five percent decrease.
Concerns over economic uncertainty, heightened competition from global streaming services, and restrictions on advertising for less healthy food products are cited as primary contributors to the revenue slump. ITV projects a full-year advertising revenue decline ranging between two and three percent. Chief executive Dame Carolyn McCall attributes the downturn to the aforementioned factors and announces £30 million in additional cost-cutting measures within ITV's fourth-quarter programming budget and discretionary spending.
The sale of its media and entertainment division, which Sky is acquiring, saw a one percent revenue decline to £1.43 billion. The transaction, expected to conclude in the second half of 2027, has prompted the Culture Secretary, Lisa Nandy, to initiate an investigation into the potential impact of the combined broadcasters on media plurality and editorial independence.
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