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ITV says Sky sale on track as it cuts Q4 content spend amid U.K. ad slump
Variety reported ITV chief Carolyn McCall said the sale of ITV's Media & Entertainment unit to Sky is progressing as planned, even as weaker U.K. ad demand led the company to cut fourth-quarter content spending.
- New headline Was: “ITV’s Sale to Sky ‘Progressing as Planned’ as Broadcaster Cuts Fourth-Quarter Content Spend Amid U.K. Ad Slump”
- Our desk filed its story
U.K. commercial broadcaster ITV said its agreed sale of the Media & Entertainment business to Comcast-owned Sky remains on the company's timetable, Variety reported, even as weaker advertiser demand led ITV to reduce fourth-quarter programming outlays1.
Chief executive Carolyn McCall described the transaction as progressing as planned, according to Variety. Sky agreed in July to pay £1.6 billion ($2.1 billion) for ITV's channels and the ITVX streaming service; ITV still expects the deal to close in the second half of 2027, the trade publication said1.
The sale would leave ITV as a standalone global production company centered on ITV Studios, Variety reported1.
U.K. Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice on the takeover on Nov. 4, Variety said, allowing the Competition and Markets Authority and media regulator Ofcom to examine the deal and report back. McCall called that step an expected milestone in the regulatory review and said it was moving at pace, according to the outlet1.
The business being sold is also the unit under advertising pressure. Variety said ITV now expects total advertising revenue to fall about 5%–10% in the last three months of 2026 and roughly 2%–3% for the full year versus 2025. The company is cutting £25 million ($33.4 million) from fourth-quarter content spend and holding back £5 million ($6.7 million) of other discretionary spending, for £30 million ($40 million) of temporary Media & Entertainment cuts; the 2026 content budget is now projected at about £1.2 billion ($1.6 billion)1.
ITV attributed the slowdown to economic uncertainty, advertising shifting toward global streamers, and U.K. limits on ads for less healthy food that took effect Oct. 1, 2025, Variety reported. Advertising revenue slipped 1% in the nine months through Sept. 30 and 8% in the third quarter; the company said it still outperformed rival broadcasters but missed earlier guidance1.
Media & Entertainment revenue fell 1% to £1.43 billion ($1.9 billion) in the nine-month period, Variety said. Digital revenue rose 7% to £461 million ($615 million), which did not offset the drop in linear advertising. Hours spent streaming ITV content rose 29% to 2.15 billion, with ITVX viewing records around World Cup soccer matches and several entertainment series1.
Group revenue dipped 1% to £2.76 billion ($3.7 billion). ITV Studios revenue also eased 1% to £1.33 billion ($1.8 billion); sales to ITV's own platforms rose 4% while revenue from outside buyers fell 4%, Variety reported. McCall said studio deliveries and licensing are weighted to the fourth quarter and that a larger share of full-year Studios revenue is already secured than a year earlier1.
ITV still expects the studio to post full-year revenue growth above the market, with EBITA margin at the lower end of a 13%–15% range because of the year's mix, Variety said. The company has bought back £81 million ($108 million) of stock under a £100 million program. McCall said the advertising outlook remains muted and that management is focused on cost actions and its split-business strategy1.
