ITV plc (GB:ITV)
LSE:ITV
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ITV plc
(LSE:ITV)
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Rating:64Neutral
Price Target:
80.00 p
▼(-2.50% Downside)
Action:Downgraded
Date:03/14/26
The score is driven primarily by uneven financial performance—strong revenue rebound but materially weaker margins and cash flow—partly offset by an improved leverage profile. Technically, the stock shows a modest uptrend with neutral momentum. Valuation is supportive via a mid-range P/E and high dividend yield. Earnings-call commentary is cautiously positive on Studios/digital growth and cost discipline, but tempered by continued linear advertising pressure, margin mix headwinds, softer cash conversion, and strategic uncertainty around the M&E discussions.
Positive Factors
Diversified revenue mix away from linear ads
Shifting two-thirds of revenue toward Studios and M&E digital materially reduces reliance on declining linear ad sales. This diversification is durable: Studios revenue is contract and license driven, while digital ad and platform growth underpin more stable, addressable inventory and recurring monetisation over the next 2–6 months.
Negative Factors
Structural decline in linear advertising
A multi-quarter structural fall in linear ad demand erodes the long-standing core monetisation engine for ITV's broadcast business. Even with digital offset, sustained linear decline reduces pricing power and audience monetisation for linear inventory, pressuring long-term M&E revenue and margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue mix away from linear ads
Shifting two-thirds of revenue toward Studios and M&E digital materially reduces reliance on declining linear ad sales. This diversification is durable: Studios revenue is contract and license driven, while digital ad and platform growth underpin more stable, addressable inventory and recurring monetisation over the next 2–6 months.
Read all positive factors
ITV plc (ITV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.95B
Dividend Yield6.17%
Average Volume (3M)5.68M
Price to Earnings (P/E)4.4
Beta (1Y)0.83
Revenue Growth0.66%
EPS Growth-43.04%
CountryUK
Employees6,133
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)0.06
Shares Outstanding3,793,189,200
10 Day Avg. Volume6,431,599
30 Day Avg. Volume5,684,177
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)1.71
Price to Sales (P/S)0.88
P/FCF Ratio17.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£93.00Price Target Upside13.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.09
Revenue Forecast (FY)£3.65B
ITV plc Business Overview & Revenue Model
Company Description
ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. It operates through Media & Entertainment, and ITV Studios segments. The Media & Entertainment segment broadcasts various contents ...
How the Company Makes Money
ITV primarily makes money through two major revenue streams aligned to its operating segments. (1) ITV Media & Entertainment: Revenue is driven largely by selling advertising across ITV’s broadcast channels and digital/streaming inventory (often r...
ITV plc Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call emphasized strong strategic progress and operational execution: Studios and digital M&E growth, significant cost savings, robust cash generation and improved digital metrics (ITVX, Planet V, Zoo 55). These positives were balanced against continued pressure in linear advertising (total ad revenue down 5%), some short-term softness in the U.S. Studios business, mix-driven margin headwinds, and measured timing risk on digital revenue targets. Management highlighted tangible evidence of transformation, disciplined cost management, and promising sports-driven ad opportunities that underpin a constructive outlook.Positive Updates
Transformation of Revenue Mix
Two-thirds of total revenue now comes from ITV Studios and M&E digital, demonstrating achievement of a key strategic target and successful diversification away from linear advertising.
Negative Updates
Linear Advertising Decline
Total advertising revenue fell 5% year-on-year and management notes a broader double-digit decline in linear advertising, highlighting ongoing challenges in the linear ad market despite digital growth offsetting some impact.
Read all updates
Q4-2025 Updates
Positive
Negative
Transformation of Revenue Mix
Two-thirds of total revenue now comes from ITV Studios and M&E digital, demonstrating achievement of a key strategic target and successful diversification away from linear advertising.
Read all positive updates
Company Guidance
Guidance for 2026: ITV expects Studios to deliver “good” revenue growth with margin toward the lower end of its 13–15% target range and revenue/profit weighted to H2, while M&E digital revenue is expected to continue its strong trajectory; Q1 total advertising revenue (TAR) is guided to be down ~2% (better than expected) and sport — the expanded FIFA Men’s World Cup (+19 matches, +60% vs Qatar) and the new Men’s Rugby Nations Championship — should boost ad revenue from Q2. Key metrics to note: 2025 Studios revenue was up 5% to £2.13bn (external revenue +10%; UK & international +14%), Studios adjusted EBITA £297m (13.9% margin); M&E digital advertising £540m and total digital £614m (+10%), digital now 31% of total advertising, total advertising -5% with M&E adjusted EBITA margin steady at 11.8%; cost savings momentum includes £63m permanent non‑content savings in 2025 (including £32m permanent and £15m temporary in M&E, £31m in Studios) and £253m cumulative permanent savings since 2019; Zoo 55 views >47bn (+30% YoY) and is on track for £120m digital revenue by 2027; balance sheet: net debt £566m (leverage 1x), profit-to-cash conversion 65% in 2025 (3‑yr avg ~80% target); dividend maintained at 5p (final 3.3p; total ≈£190m); and linear inventory addressability is expected to rise from ~30% to ~50% by end‑2026.ITV plc Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
70
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.51B | 3.49B | 3.62B | 3.73B | 3.45B |
| Gross Profit | 464.00M | 581.00M | 311.00M | 593.00M | 690.00M |
| EBITDA | 570.00M | 734.00M | 388.00M | 722.00M | 805.00M |
| Net Income | 220.00M | 408.00M | 210.00M | 428.00M | 378.00M |
Balance Sheet | |||||
| Total Assets | 4.29B | 4.19B | 4.19B | 4.47B | 4.24B |
| Cash, Cash Equivalents and Short-Term Investments | 302.00M | 427.00M | 340.00M | 348.00M | 736.00M |
| Total Debt | 876.00M | 838.00M | 878.00M | 962.00M | 1.11B |
| Total Liabilities | 2.46B | 2.35B | 2.36B | 2.60B | 2.72B |
| Stockholders Equity | 1.80B | 1.81B | 1.79B | 1.82B | 1.48B |
Cash Flow | |||||
| Free Cash Flow | 176.00M | 284.00M | 315.00M | 226.00M | 126.00M |
| Operating Cash Flow | 202.00M | 333.00M | 385.00M | 304.00M | 171.00M |
| Investing Cash Flow | -56.00M | 246.00M | -97.00M | -221.00M | -76.00M |
| Financing Cash Flow | -266.00M | -489.00M | -287.00M | -483.00M | -24.00M |
ITV plc Technical Analysis
Positive
82.05
Price Trends
78.10
Positive
77.74
Positive
76.21
Positive
Market Momentum
0.23
Positive
51.21
Neutral
37.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITV, the sentiment is Positive. The current price of 82.05 is above the 20-day moving average (MA) of 80.18, above the 50-day MA of 78.10, and above the 200-day MA of 76.21, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ITV.
ITV plc Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £22.63B | 23.83 | 2.32% | 4.42% | -2.53% | 24.52% | |
64 Neutral | £2.95B | 4.44 | 11.42% | 6.17% | 0.66% | -43.04% | |
62 Neutral | £160.95M | -0.29 | -21.91% | 11.37% | -3.75% | -346.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
49 Neutral | £2.96B | -3.51 | -7.54% | 9.68% | -8.08% | -139.61% | |
49 Neutral | £2.38B | -64.39 | -1.73% | 0.65% | ― | ― | |
43 Neutral | £47.42M | -2.46 | 75.19% | 9.87% | -5.90% | -146.37% |
* Communication Services Sector Average
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ITV plc Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
ITV Executives Receive Vested Share Awards and Sell Portions to Cover Tax
Neutral
Apr 1, 2026
ITV plc has released share awards to several senior executives under its Executive Share Award Plan and Deferred Share Award Plan, resulting in the vesting of ordinary shares at no cost to the participants. The transactions, all conducted on 30 Ma...
Business Operations and StrategyExecutive/Board Changes
ITV grants senior executives new nil‑cost share awards under long‑term incentive plans
Neutral
Apr 1, 2026
ITV plc has granted new nil-cost awards of ordinary shares to several senior executives under its Executive Share Plan and Deferred Share Award Plan, in line with its remuneration framework. Recipients include Chief Executive Carolyn McCall, Group...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
ITV Publishes 2025 Annual Report, AGM Notice and Expanded Impact Disclosure
Neutral
Mar 23, 2026
ITV plc has published its 2025 Annual Report and Accounts and the Notice of its 2026 Annual General Meeting, following the preliminary results announced earlier in March. The documents, including the Form of Proxy, are now available online, filed ...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
ITV lifts profit resilience on Studios and digital growth as ad market softens
Positive
Mar 5, 2026
ITV plc reported full-year 2025 results slightly ahead of market expectations, with group external revenue up 1% to £3.51bn and total revenue flat, as growth in ITV Studios and digital offset a drop in linear TV advertising. Adjusted EBITA sl...
Executive/Board Changes
ITV Refreshes Audit and Risk Committee Leadership
Positive
Jan 21, 2026
ITV plc has announced a leadership change within its governance structure, with Non-Executive Director Margaret Ewing stepping down as Chair of the Audit and Risk Committee on 5 March 2026 while remaining a committee member and retaining her other...
Regulatory Filings and Compliance
ITV Confirms Total Voting Rights at Year-End 2025
Neutral
Jan 2, 2026
ITV plc has reported that as of 31 December 2025 its issued share capital comprised 3,858,668,496 ordinary shares of 10p each, of which 65,479,277 are held in treasury. This leaves a total of 3,793,189,219 voting rights in the company, a key refer...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.