Broadcaster ITV has intensified its cost-cutting measures following a steep decline in half-year profits. The company, known for popular shows like Britain’s Got Talent and Love Island, announced an additional £15 million in cost reductions, supplementing an earlier £30 million cut, alongside trimming expenditure on content.
For the six months ending June 30, ITV reported underlying pre-tax profits dropped 44% to £99 million, a sharp decrease from £178 million the previous year. Operating profits also fell by 44%, reaching £76 million.
Despite the tough advertising climate, ITV remains optimistic that the increased cost-cutting will help cushion the financial impact. “While the economic environment remains uncertain, we now expect a better outturn for the full year 2025, driven by these cost efficiencies,” the company stated.
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Shares responded positively, rising 9% in Thursday morning trading.
Advertising revenue fell 7% during the first half of the year, including a 12% decline from April to June, though the results were less severe than initially feared. ITV anticipates advertising revenue to decrease only marginally in the third quarter, partly due to comparisons with the men’s Euros knockout matches held in July 2024.
Carolyn McCall, ITV’s CEO, emphasized the company’s transformation efforts: “ITV is now a leaner, more digital business in a strong position to compete and succeed in a changing market.”
She reaffirmed the company’s commitment to achieving its 2026 financial targets, highlighting growth prospects in ITV Studios and ITVX, alongside strategic cost management adapting to industry dynamics.
The current round of cost savings includes leveraging technology to enhance efficiency. Earlier this year, ITV reported cutting £60 million in costs for 2024, exceeding its initial £50 million target, with no expected job losses in 2024 following a major restructuring that eliminated over 220 roles in media and entertainment.