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1. Company Snapshot

1.a. Company Description

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide.It operates through Media & Entertainment, and ITV Studios segments.The Media & Entertainment segment broadcasts various contents on its family of free-to-air channels, including ITV, ITV2, ITV3, ITV4, ITVBe, ITV Encore, CITV, ITV Breakfast, CITV Breakfast, and various related +1 and HD equivalents; and offers television advertising services.


It also delivers content through linear television broadcasting, as well as on the ITV Hub, catch up services on pay platforms, and through direct content deals.In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Choice subscription services, as well as licenses DTT Multiplex A.The ITV Studios segment creates and produces programs and formats that include drama, entertainment, and factual entertainment for its own channels and other broadcasters.


It also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Australia, Germany, France, Italy, the Netherlands, Sweden, Norway, Finland, and Denmark.In addition, this segment engages in formats and distribution ITV's finished programmes, and formats and third-party content internationally, as well as finances productions.The company also engages in the development of platform, broadband, transactional, and mobile services; operation of digital television channels; operation of Freeview Multiplex A; rights ownership and distribution of television programs and films; and scheduling and commissioning of television programs.


ITV plc was founded in 1955 is based in London, the United Kingdom.

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1.b. Last Insights on ITV

ITV's recent performance has been impacted by a decline in total advertising revenue, despite robust digital revenue growth. The company's strategic cost management and progress in shifting towards studios and digital revenues have been notable. Analysts have trimmed their price targets, citing a more cautious stance on near-term revenue growth. ITV's transformation into a content-and-digital business is underway, with a focus on digital growth. The company's recent earnings call highlighted a "good performance" in 2025, outperforming market expectations.

1.c. Company Highlights

2. ITV's 2025 Full Year Results: A Strong Performance Amidst a Challenging Market

ITV delivered a robust financial performance in 2025, with ITV Studios revenue climbing 5% to £2.13 billion, driven by a 10% rise in external revenue. Adjusted EBITA for Studios was £297 million, with an EBITA margin of 13.9%. The company's EPS came in at 0.00584, below analyst estimates of 0.0156. Revenue growth was driven by the successful shift towards global streaming partners and the scaling of digital distribution via Zoo 55. The company's P/S Ratio stands at 1.14, indicating that the market is pricing in moderate growth expectations.

Publication Date: Mar -06

📋 Highlights
  • Revenue Growth in ITV Studios:: Total revenue increased 5% to £2.13 billion, with external revenue up 10% driven by global streaming partnerships and digital distribution via Zoo 55.
  • Profitability and Margins:: ITV Studios achieved an adjusted EBITA of £297 million, maintaining a 13.9% margin, with a goal to sustain margins between 13-15% despite market growth of 1.5-2.5% annually.
  • Strategic Focus on Digital Expansion:: Media & Entertainment aims to increase digital/programmatic inventory sales to 50% by 2026, leveraging platforms like ITVX and Planet V for non-advertising revenue through initiatives like Birthday Draw and ITV Win.
  • Cost Management and AI Integration:: ITV holds content costs flat amid inflation, using AI to enhance creativity and efficiency, achieving cost savings while maintaining a disciplined cost base in Media & Entertainment.
  • Advertising Outlook:: Q1 2026 trading exceeded expectations, with Q2 and Q3 poised for strong advertiser growth due to the World Cup, securing 100 advertisers across 20 categories in advance.

Segment Performance

ITV Studios continues to demonstrate strong momentum, with a unique position in the global content market driven by world-class talent, global scale, and a valuable IP library. The Media & Entertainment segment has been transformed into a strong and resilient streamer and broadcaster, with a disciplined cost base and compelling value drivers, including ITVX and Planet V. As Dame Carolyn McCall noted, "We've created two attractive and resilient businesses in ITV Studios and Media & Entertainment."

Growth Prospects

ITV is confident in its ability to continue creating value for shareholders, driven by the profitable growth of ITV Studios and the M&E digital business. The company expects to take share of a market growing at 1.5-2.5% annually, with analysts estimating revenue growth of 1.9% next year. ITV aims to maintain industry-leading margins within the 13-15% range.

Valuation and Returns

The company's valuation metrics indicate a moderate growth profile, with a P/E Ratio of 18.72 and an EV/EBITDA of 11.21. ITV's Dividend Yield stands at 6.08%, with a Free Cash Flow Yield of 11.58%. The company's ROIC and ROE are 9.95% and 9.43%, respectively, indicating a stable return profile.

Innovation and Efficiency

ITV is leveraging AI to enhance creativity and drive efficiency, with significant cost savings already achieved. The company aims to integrate AI into all aspects of its operations, from production to marketing, and is committed to a long-term cost-saving program. As Chris Kennedy noted, "We're committed to everyday efficiency and have a long-term cost-saving program."

3. NewsRoom

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ITV’s Big Bet Is Becoming Less About TV

Mar -06

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ITV PLC (ITVPF) Full Year 2025 Earnings Call Highlights: Strong Digital Growth Amidst ...

Mar -05

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ITV H2 Earnings Call Highlights

Mar -05

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How Recent Target Cuts Are Reshaping The Story For ITV (LSE:ITV)

Jan -09

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ITV plc's (LON:ITV) Stock Has Shown A Decent Performance: Have Financials A Role To Play?

Dec -29

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How New Deals And Analyst Views Are Rewriting The Story For ITV

Dec -07

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Why The Narrative Around ITV Is Shifting Amidst Media Sale Talks and Analyst Revisions

Nov -23

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Institutional investors are ITV plc's (LON:ITV) biggest bettors and were rewarded after last week's UK£494m market cap gain

Nov -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.20%)

6. Segments

Media & Entertainment

Expected Growth: 2.5%

ITV plc's Media & Entertainment segment growth of 2.5% is driven by increasing demand for online content, expansion of streaming services, and growth in advertising revenue. Additionally, the company's focus on producing high-quality content, such as drama and entertainment shows, has attracted a larger audience, contributing to the segment's growth.

ITV Studios

Expected Growth: 1.8%

ITV Studios' 1.8% growth driven by increasing demand for content, expansion into new genres, and strategic partnerships. Strong pipeline of productions, including drama and entertainment shows, contributes to growth. Additionally, ITV's focus on digital transformation and investment in streaming capabilities enhances Studios' revenue potential.

7. Detailed Products

ITV Studios

ITV Studios is a global production company that produces content for ITV and other broadcasters, as well as for streaming services and other platforms.

ITV Broadcasting

ITV Broadcasting is responsible for the operation of ITV's family of channels, including ITV, ITV2, ITV3, ITV4, and CITV.

ITV Commercial

ITV Commercial is responsible for selling advertising airtime across ITV's channels, as well as providing advertising solutions for brands.

ITV Studios Global Entertainment

ITV Studios Global Entertainment is a global distributor of ITV Studios' content, selling programming to broadcasters and streaming services around the world.

ITV Online

ITV Online is responsible for ITV's digital products, including the ITV Hub, a catch-up service that allows viewers to watch ITV programming online.

8. ITV plc's Porter Forces

Forces Ranking

Threat Of Substitutes

ITV plc faces moderate threat from substitutes, as viewers have alternative options for entertainment and news, such as streaming services and online news platforms.

Bargaining Power Of Customers

ITV plc has a large and diverse customer base, which reduces the bargaining power of individual customers, making it difficult for them to negotiate prices or demand customized services.

Bargaining Power Of Suppliers

ITV plc relies on a diverse range of suppliers, including content providers, advertisers, and technology vendors, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The broadcasting industry is highly competitive, and new entrants can easily disrupt the market with innovative content and business models, posing a significant threat to ITV plc's market share.

Intensity Of Rivalry

The broadcasting industry is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry and competition for ITV plc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.42%
Debt Cost 3.95%
Equity Weight 69.58%
Equity Cost 11.18%
WACC 8.98%
Leverage 43.73%

11. Quality Control: ITV plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
M6

A-Score: 7.2/10

Value: 7.5

Growth: 2.2

Quality: 7.2

Yield: 10.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
TF1

A-Score: 7.1/10

Value: 8.3

Growth: 3.6

Quality: 6.4

Yield: 9.4

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Orange Polska

A-Score: 6.7/10

Value: 7.1

Growth: 4.1

Quality: 4.6

Yield: 8.1

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
RTL Group

A-Score: 6.2/10

Value: 6.0

Growth: 2.0

Quality: 6.0

Yield: 8.8

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
SES

A-Score: 5.9/10

Value: 8.8

Growth: 2.2

Quality: 3.3

Yield: 10.0

Momentum: 9.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
ITV

A-Score: 5.2/10

Value: 5.4

Growth: 3.3

Quality: 5.4

Yield: 8.1

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.78$

Current Price

0.78$

Potential

-0.00%

Expected Cash-Flows