Hollywood Strikes Hit ITV Revenues

Advertising revenues at ITV plc rose in Q1, but the ongoing impact of the Hollywood strikes took a toll on the company’s production and distribution division, with overall revenues at the British media company slipping by 7 percent to £887 million ($1.1 billion).

ITV Studios generated revenues of £382 million ($477.5 million), a 16 percent decline. The company cited the impact of the Hollywood strikes, a slate weighted heavily to the second half of the year and weaker demand from European broadcasters concerned about the ad climate.

Media and entertainment revenues, meanwhile, ticked up by percent to £505 million ($631.2 million) as ad revenues rose by 3 percent, with digital ad revenues alone rising by 16 percent, boosted by the continued strong performance of ITVX.

“Over the full year, we expect ITV Studios revenues to be broadly flat,” said Carolyn McCall, chief executive. “We have a strong pipeline of programs, good demand for our quality content as we increasingly diversify our customer base towards streamers and the phasing of deliveries is heavily weighted to the second half of the year, including Hells Kitchen US, The Better Sister, A.C.A.B, Showtrial and Ludwig.

“ITVX continued to build on its strong first year and delivered double-digit growth in both digital viewing and digital advertising revenues in Q1, and we expect continued strong growth in both throughout the year,” McCall continued.

“Our group cost savings programs are on course to deliver £40 million of savings this year, as previously guided. Overall, we expect to continue to make good strategic progress, and we remain on track to achieve our KPI targets for 2026.”