ITV has warned of a sharper-than-expected slump in advertising revenue and announced £30m in fresh cost savings, as its £1.6bn sale to Sky faces a government investigation.
The FTSE 250 broadcaster said on Wednesday that advertising revenue fell eight per cent in the third quarter, worse than its previous forecast of a five per cent decline, as economic uncertainty and competition from global streaming platforms weighed on demand.
The figures come a week after culture secretary Lisa Nandy ordered regulators to investigate Sky’s proposed acquisition of ITV’s broadcasting and streaming operations over concerns about media plurality and editorial independence.
Chief executive Dame Carolyn McCall blamed the advertising downturn on economic uncertainty, increased competition from global streaming platforms and restrictions on less healthy food advertising.
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ITV will cut £25m from its fourth-quarter programming budget and a further £5m in discretionary spending.
Group revenue slipped one per cent to £2.76bn in the nine months to September, while external revenue fell two per cent to £2.36bn.
Meanwhile, ITV Studios, which will remain independently listed following the sale, reported a one per cent revenue decline to £1.33bn, although McCall maintained it was on track for full-year growth.
Sky takeover faces scrutiny
ITV reiterated that its £1.6bn sale to Comcast-owned Sky remained on track to complete in the second half of 2027.
Nandy issued a public interest intervention notice on 4 November, instructing Ofcom and the Competition and Markets Authority to investigate the transaction, with reports due by 27 January.
The culture secretary has raised concerns that the combined broadcasters would account for around 86 per cent of linear news and current affairs viewing in Britain, alongside questions over potential US political influence on editorial independence.
McCall described the intervention as an “expected and important milestone”, adding that the process was “moving at pace”.
Sky chief executive Dana Strong defended the deal this week, arguing it would strengthen British broadcasters against global streaming rivals.
Sky has pledged to preserve ITV’s free-to-air channels, public service commitments and the editorial independence of ITV News.