31st Jul 2026 13:03
(Alliance News) - ITV PLC reported revenue and profit growth in its interim results, and announced a GBP100 million buyback programme in light of Comcast Corp's Sky acquiring its media & entertainment business.
The London-based television broadcaster and content producer expects the up to GBP1.6 billion deal to complete in the second half of 2027. ITV will receive GBP1.2 billion in cash, Sky's GBP200 million Love Productions business, and up to GBP200 million in cash linked to 2027 advertising performance.
"This transaction will unlock significant value for shareholders, with a net cash return of around GBP950 million, excluding any contingent consideration, and continued ownership of an attractive, growing global content business in ITV Studios," ITV Chief Executive Carolyn McCall said on Friday, calling the disposal "a substantial milestone for ITV".
As for ITV's results for the first half of 2026, total group revenue rose 2% to GBP1.89 billion from GBP1.85 billion the previous year. The M&E business's total revenue rose 2% to GBP975 million, while ITV Studios total revenue also rose 2% to GBP912 million.
Pretax profit increased 16% to GBP78 million from GBP67 million, while adjusted pretax profit increased 9% to GBP108 million from GBP99 million.
Earnings per share climbed 25% to 1.5 pence from 1.2p, while adjusted EPS increased 22% to 2.2p from 1.8p.
ITV also declared an unchanged interim dividend of 1.7p per share.
"ITV delivered a solid H1 performance...including good revenue growth in ITV Studios and strong, profitable digital revenue growth within Media & Entertainment," McCall commented. "ITV Studios' H1 performance reflects the year-on-year phasing of our production slate, with revenue, profit, and margin weighted as usual towards the second half of the year as previously guided.
"This reflects a significant volume of large deliveries and high-margin licensing deals in H2, over which we have good visibility."
Also on Friday, ITV announced the launch of its up to GBP100 million buyback programme, with Morgan Stanley & Co International PLC conducting the transactions on its behalf.
"This represents an early return of part of the previously announced GBP950 million net cash return expected on completion of the sale of M&E," McCall noted.
ITV expects the programme to end "within 9-12 months," and no later than July 9, 2027.
Looking ahead, ITV is "on track" to deliver its full-year guidance, including market-beating "good revenue growth" from ITV Studios and "a margin at the lower end of the 13% to 15% range". It also expects ITVX and PlanetV to drive continued "strong profitable digital revenue growth" in M&E.
"Macro-economic headwinds remain, but we are focused on the performance of both businesses, with continued momentum, disciplined execution of our strategic priorities and a strong second half delivery schedule in ITV Studios," McCall said.
ITV shares were up 1.1% at 76.10p on Friday afternoon in London.
By Emma Curzon, Alliance News reporter
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