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ITV plc
(LSE:ITV)
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Rating:61Neutral
Price Target:
77.00 p
▲(5.41% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by mixed financial performance: a strong revenue rebound and improved leverage are offset by weaker margins and a sharp drop in free cash flow. Technicals add pressure due to a downtrend and bearish momentum. Valuation is supportive via a reasonable P/E and high dividend yield, while the latest earnings call was constructive on strategy and capital returns but flagged near-term advertising softness, margin pressure, and regulatory timing risk.
Positive Factors
Transformative sale and capital returns
The M&E sale to Sky unlocking ~£950m, plus an immediate £100m buyback and an interim dividend, materially strengthens capital flexibility. This transaction de-risks the balance sheet, funds shareholder returns, and creates optionality to reinvest in content and digital scale over the medium term.
Negative Factors
Studios margin pressure
Studios EBITA and margins falling below target indicate structural margin pressure from competitive pricing, cost inflation or mix shifts. Persistent margin underperformance would reduce cash generation and reinvestment capacity, forcing either sustained cost cuts or price recovery to restore long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Transformative sale and capital returns
The M&E sale to Sky unlocking ~£950m, plus an immediate £100m buyback and an interim dividend, materially strengthens capital flexibility. This transaction de-risks the balance sheet, funds shareholder returns, and creates optionality to reinvest in content and digital scale over the medium term.
Read all positive factors
ITV plc (ITV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.63B
Dividend Yield6.99%
Average Volume (3M)5.68M
Price to Earnings (P/E)11.6
Beta (1Y)0.90
Revenue Growth1.58%
EPS Growth27.05%
CountryUK
Employees6,866
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)0.06
Shares Outstanding3,753,499,300
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
£80.67Price Target Upside10.43% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.08
Revenue Forecast (FY)£3.62B
ITV plc Business Overview & Revenue Model
Company Description
ITV plc, a vertically integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segm...
How the Company Makes Money
ITV primarily makes money from two main segments: (1) Media & Entertainment and (2) ITV Studios. In Media & Entertainment, a core revenue stream is advertising: brands pay for commercial airtime and for advertising across ITV’s digital/streaming i...
ITV plc Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call presents a broadly positive operational and strategic picture driven by a transformational M&E transaction, strong digital growth (ITVX viewing +27%, digital revenue +13%), advertiser gains, and a healthy balance sheet (net debt GBP 652m, leverage 1x). However, near-term profitability and timing risks remain: Studios EBITA and margin were down, Group EBITA is flat with H2 weighting, Q3 advertising is expected to decline ~5%, working capital has reduced cash conversion, and the Sky transaction faces regulatory review that could delay completion. On balance the highlights (transformative deal, clear capital returns, digital and advertiser momentum, cost discipline) outweigh the lowlights (margin pressure, near-term ad softness, regulatory timing risk).Positive Updates
Transformative M&E sale and shareholder returns
Agreement to sell M&E to Sky creating a GBP 950m net cash return (excluding contingent consideration); announced immediate GBP 100m share buyback and declared interim dividend of GBP 0.017 per share (in line with prior year).
Negative Updates
Studios margin and EBITA pressure
Studios EBITA down 9% to GBP 97m with a margin of 11%, below the 13%–15% target range and expected to be weighted to H2 with margins landing at the lower end of the target.
Read all updates
Q2-2026 Updates
Positive
Negative
Transformative M&E sale and shareholder returns
Agreement to sell M&E to Sky creating a GBP 950m net cash return (excluding contingent consideration); announced immediate GBP 100m share buyback and declared interim dividend of GBP 0.017 per share (in line with prior year).
Read all positive updates
Company Guidance
Management left full‑year guidance unchanged: ITV Studios is expected to deliver good total revenue growth with EBITA margins landing at the lower end of its 13–15% target range, while M&E should continue strong, profitable digital revenue growth but with Q3 TAR expected to be down around 5% (implying TAR for the first nine months broadly flat YoY). In H1 Studios revenue grew 2% to GBP 912m (3% organic) with EBITA down 9% to GBP 97m (11% margin); M&E delivered GBP 850m of advertising revenue (up 3%), digital revenue up 13% to GBP 307m, ITVX viewing +27% with June >20m MAUs, and segment EBITA up 37% to GBP 48m; group content costs were reduced 2% while non‑content costs (ex‑marketing) were up 3% with GBP 4m of permanent savings YTD. The balance sheet remains strong with net debt of GBP 652m, leverage ~1x, profit‑to‑cash conversion 63% (rolling 12 months), a target of GBP 20m of cost savings for the full year (cumulative GBP 273m since 2019), an interim dividend of GBP 0.017/share, a GBP 100m buyback (expected to run c.9–12 months) and an anticipated GBP 950m net cash return on completion of the M&E sale to Sky.ITV plc Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
70
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.53B | 3.51B | 3.49B | 3.62B | 3.73B | 3.45B |
| Gross Profit | 453.00M | 464.00M | 581.00M | 311.00M | 593.00M | 690.00M |
| EBITDA | 557.00M | 570.00M | 734.00M | 388.00M | 722.00M | 805.00M |
| Net Income | 232.00M | 220.00M | 408.00M | 210.00M | 428.00M | 378.00M |
Balance Sheet | ||||||
| Total Assets | 4.36B | 4.29B | 4.19B | 4.19B | 4.47B | 4.24B |
| Cash, Cash Equivalents and Short-Term Investments | 264.00M | 302.00M | 427.00M | 340.00M | 348.00M | 736.00M |
| Total Debt | 916.00M | 876.00M | 838.00M | 878.00M | 962.00M | 1.11B |
| Total Liabilities | 2.61B | 2.46B | 2.35B | 2.36B | 2.60B | 2.72B |
| Stockholders Equity | 1.73B | 1.80B | 1.81B | 1.79B | 1.82B | 1.48B |
Cash Flow | ||||||
| Free Cash Flow | 201.00M | 176.00M | 284.00M | 315.00M | 226.00M | 126.00M |
| Operating Cash Flow | 234.00M | 202.00M | 333.00M | 385.00M | 304.00M | 171.00M |
| Investing Cash Flow | -79.00M | -56.00M | 246.00M | -97.00M | -221.00M | -76.00M |
| Financing Cash Flow | -174.00M | -266.00M | -489.00M | -287.00M | -483.00M | -24.00M |
ITV plc Technical Analysis
Negative
73.05
Price Trends
76.29
Negative
77.79
Negative
77.35
Negative
Market Momentum
-1.32
Negative
39.18
Neutral
27.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITV, the sentiment is Negative. The current price of 73.05 is above the 20-day moving average (MA) of 73.00, below the 50-day MA of 76.29, and below the 200-day MA of 77.35, indicating a bearish trend. The MACD of -1.32 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | £2.63B | 11.59 | 13.15% | 6.84% | 1.58% | 27.05% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | £4.15B | -17.32 | -9.33% | 5.31% | -6.47% | -162.96% | |
55 Neutral | £19.32B | 13.51 | 11.37% | 4.25% | -3.55% | 2.13% | |
53 Neutral | £2.63B | 111.50 | -1.48% | 0.02% | 9.24% | 64.97% | |
50 Neutral | £132.86M | -0.75 | -36.14% | 17.58% | -6.48% | -458.95% | |
47 Neutral | £50.46M | -9.73 | 75.19% | ― | -5.90% | -146.37% |
* Communication Services Sector Average
GB:ITV
ITV plc
71.50
-4.98
-6.51%
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ITV plc Corporate Events
Stock BuybackRegulatory Filings and Compliance
ITV Corrects Voting Rights Disclosure After Treasury Share Buyback
Neutral
Aug 3, 2026
ITV plc has corrected an earlier announcement concerning transactions in its own shares, clarifying the total number of voting rights following recent share buybacks. The amendment affects the stated voting rights figure but leaves all other detai...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
ITV Launches Share Buyback, Tightens Capital Structure
Positive
Aug 3, 2026
ITV plc has begun executing a new share buyback programme, repurchasing 4,127,799 ordinary shares at a volume-weighted average price of 75.33 pence per share on 31 July 2026 through Morgan Stanley Co. International. The company intends to hold th...
Business Operations and StrategyStock Buyback
ITV launches £100m share buyback to cut share capital
Positive
Jul 31, 2026
ITV plc has launched a share repurchase programme of up to £100 million, instructing Morgan Stanley to buy ordinary shares and resell them to ITV, primarily on the London Stock Exchange. The buyback, running from 31 July 2026 to no later than...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
ITV stays on track for 2026 targets as M&E sale to Sky reshapes group focus
Positive
Jul 31, 2026
ITV plc reported interim results for the six months to 30 June 2026 showing total group revenue up 2% to £1.89bn and external revenue up 1%, with adjusted EBITA flat and statutory profit before tax up 16% to £78m. ITV Studios delivered 2...
Business Operations and StrategyPrivate Placements and Financing
ITV Postpones Noteholder Meeting and Sweetens Consent Terms
Neutral
Jul 27, 2026
ITV plc has postponed a meeting of holders of its €500 million 4.25% Notes due 2032 from 28 July to 5 August 2026, to be held via video conference. The company is close to securing the necessary majority for an Extraordinary Resolution and i...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
ITV switches bond rating agency and seeks noteholder consent after Sky deal
Neutral
Jul 6, 2026
ITV plc has substituted Moody’s with Fitch Ratings as a relevant rating agency for its €600 million notes due 2026 and €500 million notes due 2032, while the notes continue to carry BBB- ratings from both Fitch and SP Global Rati...
Business Operations and StrategyM&A Transactions
ITV Sells Media and Entertainment Arm to Sky in £1.6bn Deal, Pivoting to Pure-Play Studios
Positive
Jul 6, 2026
ITV has agreed to sell its Media and Entertainment division to Sky, owned by Comcast, for up to £1.6 billion in a deal that will combine ITV’s broadcast and streaming operations with Sky’s pay-TV and streaming platforms. The trans...
Executive/Board Changes
ITV Non-Executive Director Sharmila Nebhrajani Joins Essentra Board
Neutral
Jun 16, 2026
ITV plc has announced that non-executive director Sharmila Nebhrajani will take on an additional role as a non-executive director at Essentra plc, effective 29 June 2026. The appointment underscores the cross-industry governance profile of ITVR...
DividendsRegulatory Filings and Compliance
ITV Executive Reinvests Final Dividend in Company Shares
Neutral
May 26, 2026
ITV plc disclosed a managerial share transaction after its final dividend payment, as required under EU Market Abuse Regulation. MUFG Registrars purchased 19,800 ITV ordinary shares at 80.442 pence each on 21 May 2026 for Chief Corporate Developme...
Executive/Board ChangesRegulatory Filings and Compliance
ITV Executives Receive Vested Share Awards and Sell Portions to Cover Tax
Neutral
May 15, 2026
ITV plc has disclosed transactions involving its top executives under the company’s Executive Share Plan, as required by EU market abuse regulations. The awards, originally granted in May 2021, vested on 13 May 2026 and were settled in ordin...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
ITV Studios and Digital Growth Offset Weak Linear Ads in Q1 2026
Positive
May 14, 2026
ITV reported flat group revenue and a 1% rise in external revenue for the first quarter of 2026, as growth in ITV Studios and digital operations offset weaker linear advertising. Studios revenue rose 4%, driven by 8% external sales growth to globa...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
ITV Wins Strong Shareholder Backing at 2026 AGM
Positive
May 7, 2026
ITV shareholders endorsed all resolutions at the company’s 2026 annual general meeting in London, including approval of the report and accounts and confirmation of a final dividend, with around 81% of issued share capital voting. Investors a...
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.