ITV PLC's (LSE:ITV) share price opened 8% lower as it reported a slowdown in ad revenue and unveiled £20 million in cost cuts.
Total advertising revenue was flat in the third quarter and is projected to grow just 2.5% for the year.
ITV attributed weaker ad bookings in part to economic uncertainty ahead of the UK budget, with a drop of 6-7% anticipated for the fourth quarter due to comparison with last year’s Rugby World Cup.
ITV Studios, the company’s production arm, saw its revenue fall 20% in the first nine months of the year, affected by the timing of content deliveries and the US writers' and actors' strikes.
However, the broadcaster expects record earnings from Studios this year, helped by cost efficiencies and a significant content schedule for the fourth quarter.
Meanwhile, the ITVX streaming platform continued to show strength, with streaming hours up 14% and digital ad revenue growing 15% in the first nine months.
To navigate current market conditions, ITV announced an additional £20 million in savings for 2024, including £10 million from content costs and another £10 million from accelerating planned savings in other areas.
CEO Carolyn McCall said: "Our cost-saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced £40 million of incremental cost savings through restructuring, improved efficiency and simplifying ways of working.
"Coupled with our strategic delivery and revenue outlook, this continues to give us the confidence that we will deliver an increase in group profit[ this year."
In early trading, the stock was off 6.13p at 66.17p.