Key facts
- ITV will return £100 million to shareholders via a share buyback.
- The company is committed to returning a total of £950 million to investors.
- This follows the £1.6 billion sale of ITV's Media and Entertainment business to Sky.
- ITV Studios, the content production arm, is expected to drive future growth.
- ITVX, the streaming platform, experienced significant growth in viewership and digital advertising revenue.
ITV has announced a £100 million share buyback as part of its commitment to return £950 million to investors following its £1.6 billion deal to sell its Media and Entertainment business to Sky. The broadcaster stated that the merger will "unlock significant value for shareholders," as it reported a two percent increase in revenue over the past six months.
ITV Studios, which produces shows such as Love Island and The Chase, is described as "well positioned to deliver above-market profitable organic revenue growth." The group's streaming platform, ITVX, saw double-digit growth in the first half of the year, with advertising revenues boosted by the World Cup. Total advertising revenue rose by eight percent in the last quarter, driven by strong partnership demand and increased engagement on ITVX.
However, ITV anticipates a slip in advertising revenue in the upcoming quarter due to current macroeconomic challenges. The company also expects a £20 million impact from new regulations on the promotion of less healthy foods. The merger with Sky is slated to complete by the end of next year, pending approval from the Competition and Markets Authority (CMA), which is reviewing the deal over concerns about shared advertising revenue.