ITV Remains in “Active” Deal Talks With Sky as It Posts Ad Drop, 4 Percent Studios Revenue Gain

ITV, the U.K. television company led by CEO Carolyn McCall, has confirmed it remains in active discussions with Sky regarding a potential sale of its media and entertainment (M&E) business. The announcement came alongside ITV’s first-quarter 2026 trading update, which showed a mixed financial performance: ITV Studios revenue grew by 4 percent, while overall M&E revenue declined by 2 percent and total advertising revenue fell by 1.5 percent. The company reaffirmed its full-year guidance despite the challenging geopolitical environment. The 4 percent growth in ITV Studios revenue was primarily driven by an 8 percent increase in deliveries to global streaming platforms such as Netflix, Disney+, and Peacock. This included popular titles like Skyscraper Live, Rivals season 2, and Love Island U.S.: Beyond the Villa season 2. However, internal revenue dropped by 7 percent due to a reduced volume of soaps and daytime content, reflecting strategic scheduling and production changes. Advertising revenue showed resilience, with a smaller-than-expected 2 percent decline in the first quarter, as advertisers postponed budgets to capitalize on the expanded Men’s Soccer World Cup later in the year. ITV expects advertising revenue to rebound strongly in the second quarter and July, buoyed by the increased number of World Cup matches, including more peak-time games compared to 2022. The company emphasized its focus on controllable factors amid geopolitical uncertainties and remains confident in delivering good revenue growth in ITV Studios alongside strong, profitable digital revenue growth in its M&E division. CEO Carolyn McCall highlighted the ongoing strategic priorities of expanding ITV Studios and accelerating digital growth as key drivers behind the company’s positive results. The potential sale of ITV’s M&E business to Sky represents a significant development in the U.K. media landscape, signaling possible consolidation and strategic realignment. ITV’s ability to navigate advertising market fluctuations and leverage streaming partnerships will be critical as it aims to sustain growth and profitability through 2026.