British media giant ITV has announced full-year results for 2025, beating market expectations, with strong performance from its studio division and streaming platform ITVX offsetting a decline in linear advertising revenue, despite ongoing talks with Sky over a potential sale of its media and entertainment business.
Group external revenue for the 12 months to 31 December 2025 increased by 1% to £3,511m ($4,680m), while total group revenue remained essentially flat at £4,121m ($5,490m). Group adjusted EBITA (earnings before interest, tax, amortization and amortization) was £534m ($711.1m), down 1% year-on-year, with cost management largely absorbing the impact of weak advertising demand.
Chief executive Carolyn McCall said the results demonstrated the scale of ITV’s transformation. He said: “ITV has outperformed current market expectations in 2025 and delivered a strong performance despite a challenging market environment.” “Our strong digital platform has enabled us to successfully capitalize on growth opportunities, deliver resilient profits and generate good levels of cash.”
Mr McCall added that two-thirds of ITV’s revenue now comes from ITV Studios and its Digital Media & Entertainment business, a milestone the company has set as a key strategic objective.
ITV Studios delivered the standout performance, with external revenue increasing 10% to £2.13 billion ($2.84 billion), driven by strong demand from global streaming platforms. The division produces long-running hit dramas such as “Love Island,” “The Voice” and “The Graham Norton Show,” as well as high-end dramas such as “Line of Duty” and “Rivals” for Disney+ and Harlan Coben’s “Run Away” and “Fool Me Once” for Netflix. The division also delivered double-digit revenue growth through digital distribution in its content library monetization division, Zoo 55.
ITV Studios’ adjusted EBITA was £297m ($395.5m), down slightly from £299m ($398.2m) in 2024, with an adjusted EBITA margin of 13.9% compared to 14.7% a year ago, a change the company has previously noted reflects a change in its revenue mix. ITV Studios produced 325 hours of high-end scripts in 2025, up from 296 hours in 2024, and sold across 20 formats in more than three countries. About 28% of ITV Studios’ total revenue came from streaming platforms, up from 25%.
ITV’s Media & Entertainment division posted a 5% decline to £1.991 billion ($2.65 billion), as lower total advertising revenue (down 5% for the full year and 6% in the fourth quarter, compared to a strong 2024 driven by men’s Euro football) weighed on its results. The decline in total advertising revenue was better than the company’s previous outlook for a 6% decline.
But ITVX continued to gain momentum. Total streaming hours increased 16% to 2.304 billion hours, and monthly active users increased 12% to 16.5 million. Digital advertising revenue increased 12% to £540m ($719.1m) and total digital revenue increased 10% to £614m ($817.7m). M&E-adjusted EBITA was down 6% to £234m ($311.6m). The company said ITVX had fully recovered its investment four years ahead of schedule.
ITV has confirmed it continues to hold discussions with Sky about a potential sale of its M&E business, following an initial announcement in November 2025. “We cannot be certain whether a transaction will take place and will update in due course,” the company said.
The outcome comes amid swirling interest in consolidation for ITV Studios. The newly announced merger of Banijay and All3 Media, creating an $8 billion production group, has already sparked speculation about further moves in the studio division. In response to a question about ITV Studios, Banijay Group CEO François Riahi said in a conference call that the combined entity was “not ruling out anything”, adding: “Integration is the key.”
ITV achieved £63 million ($83.9 million) in permanent non-content cost savings in 2025 and £15 million ($20 million) in one-off cost savings in M&E in response to weaker advertising demand in the fourth quarter. Since the beginning of 2019, the company has achieved cumulative permanent cost savings of £253 million ($336.9 million).
Statutory profit before tax fell 35% to £338m ($450.1m) and statutory EPS fell 43% to 5.9p, compared with a £194m ($258.3m) gain from the sale of Britbox International in the previous year. Adjusted EPS fell 11% to 8.5p. Net debt at year-end was £566m ($753.7m), with a leverage ratio of 1.0x adjusted EBITDA. In line with ITV’s dividend policy, the board has proposed a full-year ordinary dividend of 5.0 pence per share, bringing the total annual dividend to approximately £190 million ($253 million).
ITV Studios remains on track for strong gross revenue growth in 2026, with full-year adjusted EBITA margins expected to be at the lower end of the range of 13% to 15%. Sales and profits are expected to be weighted towards the second half of the year due to on-script distribution and phased implementation of high-margin licensing agreements.
As for advertising, total advertising revenue is expected to decline by around 2% in the first quarter of 2026, higher than previously expected, as advertisers restrain spending in the second and third quarters around the expanded Men’s Football (Soccer) World Cup. ITV holds the rights to 19 more World Cup matches than will be broadcast in 2022, meaning more matches will be shown at peak times, and is the only commercial broadcaster in the UK with rights to all England men’s rugby matches.
Total content spend in 2026 is expected to be around £1.225 billion ($1.63 billion), with ITV set to permanently reduce non-content costs by a further £20 million ($26.6 million).
