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ITV plc
(LSE:ITV)
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Rating:64Neutral
Price Target:
77.00 p
▼(-6.15% 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
Achieving two‑thirds of revenue from Studios and digital materially diversifies ITV’s cash and earnings base away from cyclical linear advertising. This structural mix increases predictability via production fees, licensing and digital ad growth, supporting more resilient revenues and long‑term planning.
Negative Factors
Margin Compression
Significant margin deterioration signals structural mix and cost pressure: lower gross and net margins reduce cash flow available for reinvestment and dividends. If mix shifts (catalog vs new production, AVOD mix) persist, sustaining prior profitability levels will be difficult without further efficiencies or pricing power gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Revenue Mix
Achieving two‑thirds of revenue from Studios and digital materially diversifies ITV’s cash and earnings base away from cyclical linear advertising. This structural mix increases predictability via production fees, licensing and digital ad growth, supporting more resilient revenues and long‑term planning.
Read all positive factors
ITV plc (ITV) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.73B
Dividend Yield6.17%
Average Volume (3M)5.68M
Price to Earnings (P/E)14.0
Beta (1Y)0.88
Revenue Growth0.66%
EPS Growth-43.04%
CountryUK
Employees6,485
SectorCommunication Services
Sector Strength97
IndustryBroadcasting
Share Statistics
EPS (TTM)0.05
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
£85.00Price Target Upside3.60% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.09
Revenue Forecast (FY)£3.67B
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: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
Negative
82.05
Price Trends
79.90
Negative
78.62
Negative
77.02
Negative
Market Momentum
-2.18
Positive
32.85
Neutral
10.94
Positive
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 82.05 is above the 20-day moving average (MA) of 78.15, above the 50-day MA of 79.90, and above the 200-day MA of 77.02, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 32.85 is Neutral, neither overbought nor oversold. The STOCH value of 10.94 is Positive, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | £2.73B | 13.97 | 11.42% | 6.17% | 0.66% | -43.04% | |
62 Neutral | £182.10M | -1.39 | -21.91% | 11.37% | -3.75% | -346.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | £18.84B | 13.18 | 2.35% | 4.42% | -3.55% | 2.13% | |
55 Neutral | £2.27B | -67.83 | -4.88% | 0.65% | 9.24% | 64.97% | |
49 Neutral | £3.12B | -14.50 | -7.54% | 9.68% | -8.08% | -139.61% | |
47 Neutral | £49.99M | -9.64 | 75.19% | 9.87% | -5.90% | -146.37% |
* Communication Services Sector Average
GB:ITV
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73.05
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-2.20%
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ITV plc Corporate Events
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.