ITV is planning an additional £30 million in cost reductions before the end of the year as its takeover by Sky is set to be investigated by Competition and Markets Authority (CMA) and the regulator Ofcom.
The group – which agreed a £1.6 billion deal in July to sell its media and entertainment division to Sky – reported an 8 per cent drop in overall advertising revenues during the quarter to the end of September.
It warned that revenues could drop by up to 10 per cent in the final three months of the year, stating that advertising demand had "weakened".
The maker of hit shows including I’m A Celebrity … Get Me Out Of Here! now projects a full-year decline in total ad revenues of between 2 per cent and 3 per cent.
ITV attributed this downturn to competition from streaming rivals, global economic uncertainty, and restrictions introduced last year on junk food advertising broadcast across television and online platforms.
The figures come as culture secretary Lisa Nandy decided to intervene in Sky’s planned £1.6 billion deal to take over ITV’s media and entertainment arm on public interest concerns over the tie-up.
She will ask the Competition and Markets Authority (CMA) and regulator Ofcom to probe the takeover and report back to her on competition and media public interest considerations respectively by 27 January.
ITV chief executive Dame Carolyn McCall stated that the group was taking "decisive action" to offset the weaker market by removing £30 million in costs from its media and entertainment division.
Around £25 million of this total will stem from content savings, such as by delaying the airing of certain programmes into next year, alongside £5 million from "discretionary non-content savings" as part of a wider effort to tighten spending across the business.
The company confirmed that jobs were not set to be impacted by the cost-cutting measures.
Dame Carolyn said: “Demand for advertising in the second half has weakened.
“This is due to continuing broader macroeconomic uncertainty, increased digital advertising on global streaming platforms and the impact of less healthy food regulations which came into effect on October 1 2025.
“We are taking decisive action, aligning our investment with advertiser demand to deliver additional temporary content and discretionary non-content cost savings in the fourth quarter.”
She added: “While the outlook for advertising remains muted, we are firmly focused on self-help and mitigating actions.”
The agreement, which has come following months of detailed discussions, will see ITV’s terrestrial television channels and its streaming service, ITVX, merge with Sky, creating a formidable new entity designed to challenge global streaming giants.
This transformative sale, which has been under negotiation since late last year, is expected to profoundly impact British broadcasting.
Crucially, the deal does not include ITV Studios, the broadcaster’s production arm responsible for hit shows such as I’m A Celebrity and the critically acclaimed drama Mr Bates Vs The Post Office.
ITV Studios will become a “pure-play global content business” with its shares listed on the London Stock Exchange following the sale, and a long-term agreement to supply content to the newly-combined Sky and ITV, according to the broadcaster.
Culture secretary Lisa Nandy has decided to intervene in Sky’s planned £1.6 billion deal to take over ITV’s media and entertainment arm on public interest concerns over the tie-up.
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