ITV's stock took a significant hit after the broadcaster reported a 7% drop in advertising revenue, sparking concerns among investors. Despite growth in its streaming platform ITVX, the company's overall financial performance has raised questions about its strategy.
Advertising Slump Hits Hard
The decline in traditional TV ad sales overshadowed the 19% rise in digital advertising, with total external revenue dipping by 2% to £1.53 billion. ITV's reliance on linear broadcasting continues to be a vulnerability in an increasingly digital market.
Streaming Growth Offers Silver Lining
ITVX, the company's streaming service, showed promising results with a 27% increase in digital viewing hours and 1.6 million monthly active users. However, this growth wasn't enough to offset the broader advertising downturn.
McCall's Leadership Under Microscope
CEO Carolyn McCall faces mounting pressure as shares fell nearly 10% following the announcement. While she highlighted progress in ITV's digital transformation, analysts remain cautious about the broadcaster's ability to compete with global streaming giants.
The company maintains its full-year outlook, but with the advertising market expected to remain challenging, ITV may need to accelerate its digital pivot to regain investor confidence.
