ITV PLC (LSE:ITV) shares climbed 10% after the broadcaster issued confident full-year guidance, prompting analysts to raise their forecasts despite a 31% drop in underlying first-half profits.
Group revenue fell 3% to £1.85 billion as total advertising revenue slipped 7%, but this decline was less severe than expected thanks to a 12% rise in digital advertising.
ITV Studios continued to underpin results, with revenue up 3% to £893 million and external sales rising 11%.
Chief executive Carolyn McCall described ITV as a “leaner, more digital business,” announcing an additional £15 million of cost savings to bring the full-year target to £45 million. The group also trimmed its 2025 content spend guidance by £20 million to £1.23 billion.
Looking ahead, management expects stronger revenue and profit growth in the second half as ITV Studios delivers more high-margin productions.
An interim dividend of 1.7p was declared, unchanged from last year.
UBS said ITV is on course to generate at least £750 million in digital revenues in 2026, with no change to its outlook for ITV Studios this year.
The Swiss bank still expects most of the growth in its Studios business to come in the second half, and margins to stay within the 13–15% range.
There shares 7.68p to 85.18p.