ITV reports ‘solid’ H1 in first results since Sky deal announcement
ITV Group has reported 2% year-on-year revenue growth to £1.9bn for the first half of 2026, with CEO Carolyn McCall describing it as a “solid performance”.
The results are the first since ITV announced the intended sale of its Media and Entertainment (M&E) business to Sky last month.
The M&E division and ITV Studios also each recorded 2% year-on-year revenue growth, to £975m and £912m respectively.
Group adjusted Ebita, the company’s measure of profit, was flat at £146m, as growth in advertising was offset by a decline in profitability at ITV Studios.
Total advertising revenue increased 3% to £850m, including a 27% growth in digital advertising revenue. This was helped by the FIFA Men’s World Cup, which drove 8% year-on-year revenue in Q2, although the uplift was lower than its forecast of 10%.
Nonetheless, ITV said the quarterfinal match between England and Norway delivered the biggest commercial audience so far with a peak audience of 18.4m viewers. The broadcaster said it attracted around 200 advertisers to the tournament across multiple categories, with 70 brands advertising around football for the first time.
On ITV’s earnings call, chief financial officer, Chris Kennedy, said that “it hasn’t all been about football”, pointing to the drama Gone, quiz show The 1% Club, and reality show Love Island as strong commercial performers.
The combination helped drive ITVX monthly active users up 10% year-on-year to reach 17.9m.
ITV also claimed the less healthy food (LHF) restrictions reduced advertising revenue by around £20m, although it said it was working “closely with advertisers to mitigate the impact”. The rules became law on 5 January, but ITV has voluntarily implemented them since October 2025.
Despite the FIFA World Cup ending in July, ITV expects total advertising revenue to fall by around 5% in Q3, reflecting what McCall describes as the current “macroeconomic headwinds”.
That would leave advertising revenue broadly flat for the nine-months results. McCall pointed to the change in Prime Minister, the conflict in the Middle East, the cost of living and inflation as factors effecting the market, but argued that a flat performance with those headwinds is “a very strong performance” and showed that ITV has “definitely outperformed”.
Kennedy said it was too early to give a view on Q4, noting that last year’s total advertising revenue “reflected a notably challenging U.K. economic backdrop”.
ITV Studios’ performance remains weighted towards the second half of the year, particularly the fourth quarter, with popular shows including Line of Duty, Vigil, and The Gentleman set to return.
Sky-ITV merger
The results come against a backdrop of ITV’s proposed sale of its M&E business to Sky for up to £1.6bn. If approved, it would give the combined entity roughly 20% of all in-home viewing in the UK.
McCall described the transaction as “a substantial milestone for ITV”, saying it would unlock significant value for shareholders and expects the transaction to be complete in H2 2027.
Kennedy said on the earnings call: “We remain confident that it will be approved by the relevant decision-makers.”
The acquisition has prompted debate across the media industry over its implications for competition and advertising.
Amy Pountain, head of media at specialist media agency Miroma Founders Network, told The Media Leader: “Seeing a British player build the scale to take on the global streamers head-on is exactly the kind of ambition the industry’s been crying out for.”
However, writing for The Media Leader, Nick Manning argues that while industry sentiment favours the deal in order to protect the UK TV sector, “the downstream implications are extraordinary”.
According to strategic media advisory Madison & Wall, the combined Sky-ITV entity represented roughly £2.3bn in advertising revenue in 2025, equivalent to 44% of the total TV ad market in the UK.
Read more on the Sky-ITV merger:
Is Sky’s acquisition of ITV necessary to compete with global platforms?
Apocalypse soon? Why the ITV/Comcast deal will make new regulation essential
Sky agrees to acquire ITV Media & Entertainment in deal worth up to £1.6bn