ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
Britain’s largest commercial broadcaster forecasts sharp fall in ad demand as firms pull back ahead of government tax rise plans
Britain’s major broadcaster has forecast a nine-per-cent decline in advertising revenue for the October-to-December quarter, attributing the drop to heightened uncertainty ahead of the government’s anticipated budget measures.
Advertisers across sectors are said to be delaying or reducing campaign spend while awaiting details of tax changes expected on 26 November.
The company said it will implement around £35 million of temporary cost savings to offset the weaker market, aiming to preserve its full-year earnings guidance despite challenging conditions.
The projected ad-revenue drop compares with analysts’ estimates of flat performance and follows a flat revenue trend in the preceding three months.
Total group revenue for the first nine months of the year rose by two per cent to approximately £2.795 billion, reflecting strength in its Studios and digital operations even as linear advertising cooled.
Chief Executive Carolyn McCall stated the company was “adjusting our costs to match this current reduction in demand,” citing increased caution among advertisers ahead of the budget.
The outlook underscores the sensitivity of the advertising market to macro-economic signals and fiscal policy-induced caution.
The company’s ability to maintain its broader earnings guidance despite the short-term headwind will be closely watched by investors and market analysts.
Advertisers across sectors are said to be delaying or reducing campaign spend while awaiting details of tax changes expected on 26 November.
The company said it will implement around £35 million of temporary cost savings to offset the weaker market, aiming to preserve its full-year earnings guidance despite challenging conditions.
The projected ad-revenue drop compares with analysts’ estimates of flat performance and follows a flat revenue trend in the preceding three months.
Total group revenue for the first nine months of the year rose by two per cent to approximately £2.795 billion, reflecting strength in its Studios and digital operations even as linear advertising cooled.
Chief Executive Carolyn McCall stated the company was “adjusting our costs to match this current reduction in demand,” citing increased caution among advertisers ahead of the budget.
The outlook underscores the sensitivity of the advertising market to macro-economic signals and fiscal policy-induced caution.
The company’s ability to maintain its broader earnings guidance despite the short-term headwind will be closely watched by investors and market analysts.
