ITV targets £30m costs cuts amid falling advertising sales and takeover scrutiny

Advertising slowdown prompts savings

ITV said advertising sales are expected to fall by 2% to 3% across the full year. In the final quarter, revenue for its television and streaming division is forecast to decline by 5% to 10%, despite the Christmas period typically being busy.

The company plans £30m in temporary savings, including £25m from content and £5m elsewhere. Content reductions are expected to affect mainly smaller external commissions, with some pushed into 2027. ITV indicated the savings would not involve staff cuts.

Chief executive Carolyn McCall attributed weaker advertising demand to broader economic uncertainty and increased digital advertising on global streaming platforms. She also cited new rules imposing a 9pm watershed on television advertising for less healthy food.

Shares fall as rivals compete

ITV has struggled to compete with companies including Netflix and YouTube, which have drawn audiences and commercial revenue away from traditional media. The BBC plans to cut as many as 2,000 jobs, while Channel 4 is planning layoffs.

Regulators examine Sky deal

Culture secretary Lisa Nandy issued a public interest intervention notice last week, prompting investigations by Ofcom and the Competition and Markets Authority. She raised concerns about the combined broadcasters accounting for about 86% of linear news and current affairs viewing in Britain, and about possible US political influence on editorial independence. Sky is owned by Comcast.

Studios business remains with ITV

After the sale, ITV will retain its studios business, which produces programmes for ITV and other broadcasters and streaming services. Studios revenue fell 1% in the first nine months of the year.