ITV Reports Solid H1 2026 Results Amid £20M Junk Food Ad Regulation Hit

ITV has released first-half 2026 results marked by modest growth offset by regulatory headwinds and production timing shifts. Total group revenue remained flat at £1.9 billion ($2.5 billion), with adjusted EBITA holding steady at £145 million—a 2% year-on-year increase but a sharp decline from £212 million in the same period two years prior.

The broadcaster's advertising division proved resilient, posting an 8% rise in total advertising revenue. CEO Carolyn McCall attributed this partly to strong demand around the World Cup, though the tournament's impact fell short of the 2024 Euros, which had delivered a substantial boost. ITV noted that England's early quarter-final exit from the World Cup, compared to reaching the Euros final in 2024, created a less sustained viewer engagement cycle.

Regulatory Pressure on Ad Revenue

One significant drag on results came from the UK government's junk food advertising restrictions, introduced in October 2025. The rules cost ITV's media and entertainment arm £20 million ($26 million) in lost advertising revenue during the first half. Despite this impact, the company said it is working "closely with advertisers to mitigate the impact." ITV also signalled further headwinds ahead, warning that advertising is likely to drop by 5% in the next quarter due to broader macroeconomic conditions. Management expects nine-month results to show flat performance year-on-year.

ITV Studios Struggles

ITV Studios, the production arm set to be spun off as an independent listed company ahead of a proposed Sky acquisition, saw less encouraging trends. While total revenue edged up 2%, EBITA fell 9% to £97 million from £107 million in the prior year. ITV attributed the decline to the phasing of deliveries, with major projects backloaded to the second half of 2026. The company acknowledged that the first half of 2025 had benefited from significant streaming deals—including "One Piece" and "The Better Sister"—that were not matched in the current period. Titles like "Love Island," "Rivals" for Disney+ and "The Gentlemen" for Netflix could not offset the comparative gap.

Bright Spot: ITVX

The company's streaming platform ITVX emerged as a bright spot, delivering record viewing with a 27% uplift in the first half. Advertising revenue on the platform rose 13% year-on-year, underpinning the wider strategy behind Sky's interest in acquiring the broadcaster. McCall noted in a statement that ITV "delivered a solid H1 performance" and remains on track to meet full-year guidance, citing "good revenue growth in ITV Studios and strong, profitable digital revenue growth within Media & Entertainment."

Shareholders were rewarded with an interim dividend of 1.7p per share and a £100 million buyback programme. The regulatory approval process for the Sky acquisition is underway, with the UK Culture Secretary expected to review the deal closely.