ITV PLC (LSE:ITV) reported a 4% rise in revenue for the first quarter as growth from its production studio offset a decline in total advertising revenue, though this is expected to worsen substantially in the second quarter.
Total external revenue for the broadcaster and television producer came in at £756 million for the first three months of 2025, up from £727 million a year earlier.
ITV Studios revenue rose 1% at £386 million in Q1 but Media & Entertainment revenue declined 3% to £489 million as total ad revenue fell 2%, which had been previously guided.
For the second quarter, ITV now expects total ad revenue to plunge around 14%, worse than analysts expected, resulting in first-half ad sales falling around 8%.
The company pointed out that Q2 the previous year had benefitted from the Men's Euros football competition, and ad revenues were expected to be fairly similar compared to 2023.
For the full year, it expects "strong growth" in digital advertising revenues, supported by what it said was still a strong upcoming schedule, including the Women's Euros, new entertainment series Shark: Celebrity Infested Waters, and new and returning dramas such as Code of Silence, I Fought The Law and Ridley.
For the Studios arm, revenue, profit and margin will be weighted to the second half, with profit margin being higher due to the timing of cost savings and the delivery of high-margin shows.
However, full-year margin will be lower than 2024 because of a change in sales mix, but still within the 13-15% target range.
Donald Trump's threat of tariffs or other trade measures against film production is not expected to directly hit the company, it said, as it only produces TV programmes.