ITV cutting costs by £30m as ad market weakens

ITV has revealed plans to cut costs by another £30 million by the end of the year as it warned over a worsening advertising market.The group – which struck a £1.6 billion deal in July to sell its media and entertainment division to Sky – said total advertising revenues fell 8% in the quarter to the end of September and cautioned they could fall by up to 10% in the final three months of the year as it said demand for advertising had “weakened”.ITV, which makes hit shows such as I’m A Celebrity … Get Me Out Of Here!, now expects total ad revenues to fall by 2% to 3% over the year as a whole, saying the market has been impacted by competition from streaming rivals, global economic uncertainty and last year’s introduction of restrictions on junk food advertising aired on TV and online.ITV chief executive Dame Carolyn McCall said the group was taking “decisive action” to offset the weaker market, stripping out £30 million in costs from its media and entertainment division.Around £25 million of this will come from content savings, such as by delaying airing of some content into next year, as well as £5 million from “discretionary non-content savings” as it looks to tighten its belt across the business.It confirmed jobs were not set to be impacted by the cost-cutting.Dame Carolyn said: “Demand for advertising in the second half has weakened.“This is due to continuing broader macroeconomic uncertainty, increased digital advertising on global streaming platforms and the impact of less healthy food regulations which came into 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 added: “While the outlook for advertising remains muted, we are firmly focused on self-help and mitigating actions.”Shares in ITV fell more than 3% after the update, which showed total group-wide external revenues falling 2% to £2.36 billion for the first nine months of the year so far despite a 6% rise in digital sales at its ITVX streaming platform.The figures come as ITV faces investigations into the £1.6 billion deal to sell its media and entertainment arm to Sky after the Culture Secretary stepped in on public interest concerns.Read MoreLisa Nandy formally intervened in a move triggering probes by the Competition and Markets Authority (CMA) and regulator Ofcom, with a deadline to report back to her on the impact of the deal on media plurality in the UK and free speech by January 27.Ms Nandy will also bring forward new streaming legislation in view of her “specific concerns” over the tie-up to ensure the public interest test can apply to on-demand programmes as well as broadcasting.ITV said it was an “important milestone in the regulatory review process” and continues to expect the deal to complete in the second half of 2027.The Sky deal aims to create a stronger competitor to the global streaming giants.The sale includes ITV’s terrestrial TV channels and streaming service ITVX but does not include its production arm, ITV Studios, which makes shows including I’m A Celebrity and popular dramas such as Mr Bates Vs The Post Office.Garry White, chief investment commentator at Raymond James, said: “Markets are paying less attention to advertising trends and more to the regulatory scrutiny facing the takeover.“Until there is greater clarity, likely after January, the market’s focus will remain on whether the transaction proceeds and on what terms. This will be the main driver of its valuation over the next few months.”