ITV reported a solid first half of the year, with the Men’s Football World Cup driving a 3% increase in advertising revenue and record viewing figures. The British broadcaster, which is preparing to sell its channels and streaming platform to Comcast’s Sky, confirmed its performance remained on track to meet full-year financial guidance.
Advertising boost offsets production challenges
Adjusted operating profit held steady at £146 million for the first six months of 2024, slightly below analyst expectations. While advertising revenue rose, profit in ITV Studios fell because of scheduling changes for long-running soap operas like Coronation Street. Executives stated the production business would recover in the second half, pointing to a strong lineup of upcoming shows.
Carolyn McCall described the results as solid and highlighted confidence in delivering revenue growth in ITV Studios. She also noted expectations for strong, profitable digital revenue within the Media & Entertainment division. The sale to Sky, scheduled to close in late 2027, will leave ITV as a standalone production company, with potential additional value reaching £1.6 billion.
World Cup delivers record audiences
The tournament’s impact went beyond advertising. ITV achieved its highest-ever viewing numbers for the period, though it did not disclose specific figures. The broadcaster has long depended on live sports and major events to boost ad sales, and this approach proved effective in the first half.
Moving to a production-only model represents a major change for ITV. Once the Sky deal is finalized, the company will no longer own its flagship channels or streaming service. Instead, it will focus on creating content for other platforms. This shift occurs as traditional TV audiences shrink and competition from global streaming services intensifies.
The company’s ability to meet full-year targets now hinges on its production pipeline. The second half typically brings a surge in new releases, which could offset the first-half profit dip in Studios. Executives have not altered their guidance, indicating they remain optimistic about the outlook.
Advertisers continue to favor live events, where audiences are less likely to skip or block ads. Sports, especially major tournaments, remain a dependable way for broadcasters to attract viewers despite changing habits across platforms.
The sale to Sky still requires regulatory approval, but both companies expect the process to stay on schedule. If completed, the deal would transform ITV’s business, removing its traditional distribution channels but allowing it to expand its production work. The financial performance of other media companies this quarter suggests similar strategic shifts are underway across the industry.
