ITV blames late Budget for delaying TV programmes
Broadcasting giant ITV will delay some programmes into the new year and implement cost cuts, citing a significant hit to advertising revenue ahead of the upcoming Budget.
The group, behind Iโm A Celebrityโฆ Get Me Out Of Here!, anticipates a 9 per cent decline in total advertising income this quarter, attributed to widespread business caution before the November Budget.
An ITV statement highlighted: “The economic outlook in the UK remains uncertain with widespread caution being exercised across business sectors ahead of the Budget in November.
โThis is impacting demand for advertising throughout the industry in the fourth quarter.”
ITV, repeatedly stepping up cost-cutting targets, announced an additional ยฃ35 million in “temporary” savings.
These will focus on its media and entertainment division, with ยฃ20 million saved by postponing certain programmes and a further ยฃ15 million from trimming marketing spend.
No key programmes are expected to be impacted by the delays, nor are any job losses foreseen as a direct result of this latest cost-saving drive, the company assured.
Carolyn McCall, ITV chief executive, said: โUK macro data is showing a softening economy, with increased uncertainty in the lead up to the UK Budget which is impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand.โ
But she said the group continues to have a strong slate of year-end programmes, with the next series of Iโm A Celebrityโฆ due to air from the end of next week and the menโs Football World Cup coming in 2026.
Shares in ITV fell 1 per cent after the update.
Its ad revenues caution comes after it saw flat total advertising revenues in its third quarter, which it said was better than expected.
Ad revenues are 5 per cent down in the year so far and are now expected to fall by around 6 per cent over the full-year.
ITV said in July it was upping its savings target by another ยฃ15 million on top of ยฃ30 million previously announced, with technology among efforts to drive the latest round of cost cutting.
