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U.K. broadcaster ITV’s CEO Carolyn McCall said the broadcaster’s sale of its Media & Entertainment business to Sky is “progressing as planned,” even as weaker advertiser demand forced the U.K. company to cut £25 million
($33.4 million) from its fourth-quarter content spend.
The deal, which covers ITV’s channels and its ITVX streamer, would leave the company as a standalone global content group built around ITV Studios, the producer of “The Gentlemen” and “Line of Duty.” Comcast-owned Sky agreed in July to pay £1.6 billion ($2.1 billion) for the business, and ITV still expects it to close in the second half of 2027. On Nov. 4, U.K. Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice on the takeover, as Variety reported, opening the way for the Competition and Markets Authority and media regulator Ofcom to examine it and report back to her.
“This is an expected and important milestone in the regulatory review process, and we are pleased that it is moving at pace,” McCall said.
The business ITV is selling is also the one under pressure. The company now expects total advertising revenue to drop by around 5%–10% in the last three months of 2026 and by roughly 2%–3% across the full year, compared with 2025. ITV will also hold back £5 million ($6.7 million) of discretionary spending outside programming, so the temporary fourth-quarter cuts in Media & Entertainment add up to £30 million ($40 million). Its total 2026 content budget is now projected at about £1.2 billion ($1.6 billion).
ITV blamed the slowdown on ongoing economic uncertainty, ad money moving toward global streamers and the U.K.’s restrictions on advertising for less healthy food, which kicked in on Oct. 1, 2025. Advertising revenue slipped 1% over the nine months to Sept. 30 and fell 8% in the third quarter alone. The company said it still beat rival broadcasters but missed its earlier guidance.
“Despite a more challenging market, we remain on track to deliver good revenue growth in ITV Studios and continued profitable digital revenue growth in Media & Entertainment (M&E) over the full year,” McCall said.
Media & Entertainment revenue slid 1% to £1.43 billion ($1.9 billion). Digital revenue rose 7% to £461 million ($615 million), but that wasn’t enough to cover the drop in linear advertising. Hours spent streaming ITV content jumped 29% to 2.15 billion. ITVX set viewing records with the final matches of the soccer World Cup, along with “Trigger Point,” “Big Brother” and “Love Island.” Eight of this year’s 10 most-watched series among commercial broadcasters and streamers have aired on ITV.
Group revenue dipped 1% to £2.76 billion ($3.7 billion) for the nine-month period. ITV Studios revenue also eased 1%, to £1.33 billion ($1.8 billion). Sales to ITV’s own channels and streamer rose 4% on scripted and unscripted shows, both new and returning, which made up for scheduling changes to the studio’s soap and daytime output. Revenue from outside buyers fell 4%. Distribution income from the studio’s back catalog kept growing.
McCall said the studio’s nine-month figures matched what the company had expected. “As previously guided, production deliveries and licensing deals are heavily weighted to Q4 this year and despite this, we have a greater proportion of our full year Studios revenue secured than at this point last year,” she said.
ITV Studios was behind five of the U.K.’s 10 most-watched dramas in the third quarter: “The Gentlemen” for Netflix, “Ludwig” Season 2 and “Vigil” Season 3 for the BBC, and “The Blame” and “The Dark” for ITV. “The Blame” is the most-watched drama of 2026 so far.
The company still expects the studio to post good full-year revenue growth that outpaces the market. Because of the year’s revenue mix, its EBITA margin should land at the lower end of a 13%–15% range. Fourth-quarter deliveries include “SuburraMaxima” for Netflix, “Love Island US: Beyond the Villa” Season 3 for Peacock, “Hell’s Kitchen” Seasons 25 and 26 for Fox, and “Line of Duty” Season 7, “The Last Detectives” and “The Secret Diary of Adrian Mole Aged 13 ¾” for the BBC. High-margin licensing deals through the Global Partnerships unit will add to the total.
ITV has bought back £81 million ($108 million) of stock so far under its £100 million ($133 million) buyback program.
“While the outlook for advertising remains muted, we are firmly focused on self help and mitigating actions, while continuing to execute our strategic priorities to drive performance across both businesses,” McCall said.
