Shares in ITV fell in early trading on Wednesday after the broadcaster warned that advertising revenue could fall by as much as 10% in the final quarter of the year, as a weak advertising market continued to weigh on its business.

ITV was down 4.34% at 64.90p in early trade on 11 November, according to Sharecast, making it one of the biggest fallers on the FTSE 250. The drop came after the company published a trading update for the nine months to 30 September 2026.

Total revenue for the nine months fell 1% to £2.76 billion, down from £2.80 billion a year earlier, as lower advertising income and the timing of production deliveries affected performance. External revenue, which excludes sales between ITV's own divisions, fell 2% to £2.36 billion from £2.40 billion.

Advertising falls 8% in the third quarter

The sharpest pressure came in advertising. Total advertising revenue fell 1% over the nine months, but dropped 8% in the third quarter alone. ITV said demand had weakened because of continuing macroeconomic uncertainty, increased competition for advertisers from global streaming platforms, and restrictions on advertising less healthy food products that were introduced in October 2025.

Looking ahead, the company expects total advertising revenue to fall by between 5% and 10% in the fourth quarter, which includes the important Christmas advertising season. That would leave total advertising revenue down by between 2% and 3% for the full year.

ITV's Media & Entertainment division, which includes its television channels and the ITVX streaming service, reported revenue of £1.43 billion for the nine months, down 1% from £1.45 billion a year earlier. Within the division, digital revenue rose 7% to £461 million from £432 million, and digital advertising revenue rose 6%. Total streaming hours increased 29% to 2.15 billion, up from 1.67 billion, helped by viewing of the football World Cup, drama and entertainment programmes.

The broadcaster also increased its share of commercial television viewing to 32.7%, up from 31.8% a year earlier, and said its share of the 1,000 most-watched commercial broadcast programmes rose to 92% from 90%.

Studios revenue dips as deliveries shift to Q4

ITV Studios, the production arm that makes programmes for ITV and for other broadcasters and streamers, reported revenue of £1.33 billion, down 1% from £1.35 billion a year earlier. Internal revenue rose 4%, supported by deliveries of scripted and unscripted programmes to ITV's own channels, while external revenue fell 4%, reflecting the timing of production deliveries and licensing deals that the company expects to be concentrated in the final quarter.

ITV kept its expectation of full-year revenue growth at ITV Studios, but said the division's adjusted EBITA margin is now expected to be at the lower end of its previously indicated range of 13% to 15%, reflecting the mix of revenue. Upcoming deliveries include productions for Netflix, Peacock, Fox and the BBC.

£30 million of temporary savings planned

In response to weaker advertising demand, ITV said it had identified £30 million of additional temporary savings in the fourth quarter. The savings comprise £25 million of lower content spending and £5 million of discretionary non-content savings. The company expects its total content budget for 2026 to be about £1.2 billion.

Chief executive Carolyn McCall said the company remained focused on adjusting spending to reflect advertiser demand while continuing its digital growth strategy.

ITV reported net debt of £695 million at 30 September, up from £652 million at the end of June, with total available liquidity of £940 million, made up of £240 million in cash and £700 million in committed undrawn borrowing facilities. During September it refinanced a maturing €360 million bond through a £300 million term loan maturing in September 2029.

The company also continued its £100 million share buyback programme, having bought back about 116.6 million shares for £81 million by 6 November.

Sky sale continues through regulatory review

ITV confirmed that its proposed sale of the Media & Entertainment business to Sky continues to progress through the regulatory process. On 4 November 2026 the Secretary of State issued a Public Interest Intervention Notice on the transaction, which ITV described as an anticipated stage of the review. The company still expects the sale to complete in the second half of 2027, leaving ITV Studios as a standalone global content production and distribution business.

For the rest of 2026, ITV expects Studios' financial performance to be concentrated in the fourth quarter, while Media & Entertainment continues to face reduced advertising demand. Investors will now watch whether the Christmas advertising season is as weak as the company fears, and whether the cost savings are enough to protect profits while the Sky deal works its way through regulation.