ITV announces £100 million share buyback as revenue rises 2%

ITV has reported its first financials since announcing its landmark deal to sell its television network and streaming business to Sky, all of which surround returning £100 million to shareholders.

Sky’s buy of most of ITV confirmed

The buyback represents an early portion of the approximately £950 million ITV expects to return to investors after completing the £1.6 billion sale of its Media & Entertainment division. The program is expected to begin shortly and be completed within nine to 12 months.

ITV also maintained its interim dividend at 1.7 pence per share, representing a payment of about £60 million.

Chief Executive Carolyn McCall said the buyback and dividend reflected ITV’s commitment to shareholder returns as the company moves toward becoming a stand-alone production and distribution business centered on ITV Studios.

The announcement accompanied ITV’s financial results for the six months ending June 30, 2026, the company’s first earnings report since confirming the Sky transaction.

Total group revenue increased 2% to £1.89 billion, while external revenue rose 1% to £1.6 billion. Adjusted earnings before interest, taxes and amortization were unchanged at £146 million. Statutory pretax profit increased 16% to £78 million.

The Media & Entertainment division generated £975 million in revenue, up 2% from the same period in 2025. Adjusted earnings for the division climbed 37% to £48 million.

Advertising benefited from ITV’s coverage of the 2026 FIFA World Cup. Total advertising revenue increased 3% during the half-year and 8% during the second quarter.

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ITVX viewing increased 27%, while digital advertising revenue rose 13% to £268 million. Total digital revenue, including subscriptions and other sources, increased 13% to £307 million. The company reported 17.9 million monthly active users, up 10%.

ITV warned that the World Cup-related advertising lift may not continue. The company expects total advertising revenue to decline about 5% during the third quarter, although revenue for the first nine months of 2026 is projected to remain flat compared with the previous year.

ITV Studios reported revenue of £912 million, up 2%, but adjusted earnings declined 9% to £97 million. ITV attributed the decrease to the timing of production deliveries, changes involving its daytime and soap programming and a greater concentration of licensing revenue in the second half of the year.

ITV announced the sale of Media & Entertainment to Sky on July 6, 2026. The Competition and Markets Authority has begun reviewing the transaction, and ITV expects Culture Secretary Lisa Nandy to issue a public interest intervention notice.

The company previously expected the transaction to close during the first half of 2027. ITV acknowledged that a more extensive second-phase competition review could push completion into the second half of the year.