ITV Plans £35 Million in Temporary Cost Savings Amid Softening Advertising Demand

ITV Announces £35 Million Cost Savings Amid Advertising Slowdown

London, UK – ITV, the U.K.’s leading television network, is bracing for a challenging fourth quarter as it reveals plans for £35 million ($46 million) in temporary cost savings. The announcement, made by CEO Carolyn McCall on Thursday, comes in response to a notable decline in advertising demand, which the company attributes to an uncertain economic climate ahead of the upcoming budget from Prime Minister Keir Starmer’s Labour Party government.

In its latest financial report, ITV revealed that third-quarter revenue remained stable compared to the previous year, outperforming forecasts. However, the company anticipates a 9 percent drop in total advertising revenue for the fourth quarter, leading to an overall 6 percent decline in ad revenue for the year.

“The economic outlook in the U.K. remains uncertain, with widespread caution being exercised across business sectors ahead of the budget in November,” ITV stated. This cautious sentiment is impacting advertising demand across the industry, prompting the network to implement cost-saving measures.

The £35 million in savings will primarily come from the Media & Entertainment (M&E) segment, with £20 million earmarked for content savings. ITV plans to shift some programming into 2026, utilizing existing budget allocations for that year. The total content budget for 2025 is projected to be around £1.21 billion ($1.58 billion), slightly down from previous estimates.

In addition to content savings, ITV will also cut £15 million ($20 million) in non-content expenses, focusing on reduced discretionary spending and marketing efficiencies. Despite these challenges, ITV’s total revenue grew by 2 percent to £2.80 billion ($3.66 billion) over the first nine months of 2025, driven by an impressive 11 percent increase in ITV Studios revenue.

The production arm has seen a 20 percent rise in external revenue, fueled by strong demand from global streaming platforms. McCall expressed optimism about ITV’s performance, stating, “Our strategic initiatives continue to progress well, and we remain confident in delivering good growth in ITV Studios revenue and digital revenue for the full year.”

Digital advertising revenue has been a bright spot for ITV, increasing by 15 percent, while total digital revenue rose by 13 percent. The network’s streaming service, ITVX, also reported a 14 percent increase in viewing hours.

As ITV navigates this turbulent advertising landscape, the company remains committed to strategic cost management and optimizing its content spend to align with viewer dynamics. With the upcoming budget looming, all eyes will be on ITV as it adapts to the evolving market conditions.