UK TV giant ITV, led by CEO Caroline McCall, provided a trading update for the first quarter of 2026 early in the morning, along with an update on a potential big deal.
“Following our November 2025 announcement, we remain in active discussions with Sky regarding the potential sale of the media and entertainment business,” the company said. “We will update the market in time.” Its M&E business includes ITV’s commercial free-to-air TV channels in the UK, as well as its ITVX streaming platform. Following a potential deal, ITV Studios will continue as an independent company.
ITV Studios revenue rose 4 percent in the first quarter, while M&E revenue fell 2 percent, with total advertising revenue (TAR) down 1.5 percent, ITV reported on Thursday.
In its guidance earlier this year, ITV said ITV Studios was “on track to deliver another year of good growth in total revenues in 2026, ahead of the market, driven by external revenues”. But it also highlighted that revenue, margins and profits will be “weighted relative to the second half.” [of the year]due to written delivery milestones and timing of high-margin licensing deals.
On Thursday, the company highlighted that first-quarter gains were “driven by strong external revenue growth of 8 percent, primarily reflecting delivery milestones to global streaming platforms, including Live skyscraper for netflix, Competitors Season 2 for Disney+ and Love Island USA: Beyond the Villa The second season of Peacock. Internal revenues decreased 7 percent, as expected, due to lower volume of series and daytime content following previously announced strategic scheduling and production changes.
In its advertising forecast on Thursday, ITV noted: “We expect TSR to rise by around 10 percent in the second quarter and a strong July, driven by strong demand from advertisers around men. [soccer] World Cup. As we monitor the ongoing challenging geopolitical environment, we are focusing on what we can control and staying on track to deliver our full-year guidance for good revenue growth at ITV Studios and strong growth in profitable digital revenues in M&E.
ITV also provided additional figures for its M&E performance in the first quarter, noting that 12 percent digital revenue growth “largely” offset the decline in linear advertising revenue. Digital advertising revenue grew 14 percent, boosted by a record start to the year for ITVX, with total streaming hours up 13 percent, driven by content such as drama gold, Love Island: All Stars And the six nations [rugby] Championship.” Non-advertising M&E revenues fell 8 percent during the quarter, in line with ITV expectations.
“Our strategic priorities of expanding ITV Studios and strengthening our digital media and entertainment business continue to deliver clear and positive results,” McCall concluded.
