ITV PLC (LSE:ITV) reported a 10% fall in advertising revenue in the first quarter but said overall performance was in line with forecasts.
Carolyn McCall, ITV's chief executive, said: "ITV continued to make significant strategic progress in the quarter and all parts of the business performed in line with expectations."
Total external revenue was down 7% at £776mln compared to £834mln a year prior, with ITV Studios revenue flat at £457mln and ITV Media & Entertainment revenue down to £495mln from £545mln.
The company said the drop in advertising revenue was expected and forecast a further 12% fall in the second quarter, describing the advertising outlook as “challenging”.
But it highlighted hopes for the third quarter when Love Island and the Rugby World Cup are set to draw large broadcast and streaming audiences.
ITVX has sustained its strong launch, with a 49% increase in streaming hours and 29% growth in digital revenue in the quarter, the firm said.
ITV Studios is on track for mid-single digit revenue growth, ahead of the market, and the group expects the division to deliver at least 5% average organic revenue growth per annum to 2026.
In the second quarter, Media & Entertainment continues to see strong growth in digital advertising with revenues expected to be up over 20%.