ITV (LSE:ITV) shares fell on Wednesday after the broadcaster warned that advertising revenue could drop by as much as 10% in the final three months of the year.
The timing matters for ITV, whose channels carry retailers’ Christmas campaigns. It now plans to spend £25 million less on programmes this quarter as advertisers rein in their budgets.
ITV expects advertising revenue to fall between 5% and 10% in the quarter compared with a year earlier, leaving it down 2% to 3% for 2026 as a whole.
Chief executive Carolyn McCall pointed to economic uncertainty, competition from global streaming services selling more advertising, and restrictions on adverts for less healthy food.
Viewers are spending more time with ITV online. Streaming hours rose 29% in the nine months to September and digital revenue grew 7% to £461 million.
Across the group, however, advertising revenue slipped 1% to £1.24 billion.
ITV has agreed to sell its channels and streaming business to Sky for £1.6 billion.
That would leave shareholders with ITV Studios, which makes and licenses programmes for customers including the BBC and Netflix.
Studios revenue fell 1% over the nine months, though ITV expects full-year growth as it delivers more shows and completes licensing deals in the final quarter.
It expects the Sky sale to close in the second half of 2027, subject to regulatory review.
In London, ITV shares were down 4.57% changing hands at 63.75p.
