- ITV announced a £100 million share buyback following its £1.6 billion deal with Sky.
- The company plans to return around £950 million to shareholders.
- ITVX recorded double-digit growth, helped by strong World Cup advertising demand.
ITV has announced a £100 million share buyback as it begins returning cash to investors following its £1.6 billion agreement to sell its Media and Entertainment business to Sky.
The broadcaster said it expects to return around £950 million to shareholders, excluding any contingent payments, describing the transaction as a milestone that will unlock significant value while allowing it to focus on expanding ITV Studios, its global television production business.
The update came alongside ITV's half-year results, which showed revenue rose 2 per cent compared with the same period last year. The company said it remains on track to meet its full-year targets despite warning that wider economic conditions could weigh on advertising in the months ahead.
Studios and streaming take centre stage
Under the agreement announced earlier in July, ITV will sell its free-to-air television channels and the ITVX streaming platform to Sky, while retaining ownership of ITV Studios. The production arm is behind programmes including Love Island, The Chase, The Gentlemen, Line of Duty and Vigil.
ITV said ITV Studios is well placed to deliver profitable organic growth, with earnings expected to strengthen in the second half of the year as several major productions return.
Before the sale completes, ITVX continued to perform strongly. The streaming platform recorded 27 per cent growth in viewing during the first six months of the year, while digital advertising revenue increased 13 per cent year on year.
World Cup boosts advertising, but challenges remain
Advertising also received a lift from the FIFA World Cup, with ITV saying England's progress through the tournament drove strong audience engagement and increased demand from commercial partners. Total advertising revenue rose 8 per cent in the latest quarter.
However, the broadcaster cautioned that advertising revenue is expected to soften in the next quarter because of broader macroeconomic headwinds.
ITV also warned that new restrictions on advertising less healthy food products are expected to reduce revenue by around £20 million in the first half of the year. The company said it is working with advertisers to minimise the impact of the regulations.
The sale of ITV's Media and Entertainment division to Sky is expected to complete by the end of 2027, subject to approval from the Competition and Markets Authority (CMA). The regulator is examining the transaction over concerns about the combined group's advertising market position.
