ITV (LON:ITV) Posts Earnings Results

ITV (LON:ITV) released its earnings results on Thursday. The broadcaster reported GBX 8.50 earnings per share for the quarter, Digital Look Earnings reports. ITV had a net margin of 6.12% and a return on equity of 9.43%.

Here are the key takeaways from ITV’s conference call:

• ITV outperformed market expectations in 2025, hit its strategic goal with two-thirds of revenue now from Studios and M&E Digital, and maintained a full-year dividend of 5p.
• ITV Studios grew revenue 5% to £2.13bn (external revenue +10%), delivered adjusted EBITDA of £297m (13.9% margin), and is scaling digital distribution via Zoo 55 with a target of £120m digital revenue by end‑2027.
• Media & Entertainment’s digital business showed strong momentum—digital ad revenue +12% to £540m and total digital +10% to £614m (now 31% of ad revenues)—while content and non‑content cost cuts kept M&E adjusted EBITDA margin steady at 11.8%.
• Balance sheet and cash generation remain robust with net debt £566m (1x leverage), 2025 profit‑to‑cash conversion of 65% and a three‑year average around 80%, supporting reinvestment and shareholder returns.
• ITV confirmed preliminary discussions with Sky about a possible sale of the M&E business; talks are active but there is no transaction update yet, creating strategic uncertainty.

ITV Trading Up 7.3%

Shares of ITV stock opened at GBX 84.25 on Friday. The firm has a market capitalization of £3.15 billion, a PE ratio of 17.19, a price-to-earnings-growth ratio of -0.53 and a beta of 0.85. The company has a debt-to-equity ratio of 52.19, a current ratio of 1.54 and a quick ratio of 0.83. The company’s fifty day moving average price is GBX 80.86 and its two-hundred day moving average price is GBX 79.42. ITV has a 52-week low of GBX 63.85 and a 52-week high of GBX 88.90.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. lowered their price target on ITV from GBX 112 to GBX 105 and set an “overweight” rating on the stock in a research note on Friday, November 7th. One research analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, ITV currently has an average rating of “Buy” and a consensus price target of GBX 105.

ITV Company Profile

ITV is a vertically integrated producer broadcaster and streamer, consisting of ITV Studios and Media & Entertainment.

ITV Studios is a scaled and global creator, owner and distributor of high-quality TV content. It operates in 12 countries, across 60+ labels and has a global distribution network. It is diversified by genre, geography and customer in the key creative markets around the world.

Media & Entertainment is the largest commercial broadcaster and streamer in the UK, delivering unrivalled audience scale and reach.