Broadcasting giant ITV has said it will delay some programmes into the new year to save costs as it warned over a hit to advertising from uncertainty before the upcoming Budget.
The group behind I’m A Celebrity… Get Me Out Of Here! said it is bracing for total advertising revenues to slump by around 9% over the final three months of the year as many businesses pause spending before the Budget.
It said: “The economic outlook in the UK remains uncertain with widespread caution being exercised across business sectors ahead of the Budget in November.
“This is impacting demand for advertising throughout the industry in the fourth quarter.”
ITV, which has been repeatedly stepping up cost cutting targets, said it would find another £35 million in “temporary” savings to offset the tougher trading.
The cost reductions will focus on its media and entertainment division, with plans to save £20 million through delaying some programming into the new year and another £15 million from trimming marketing spend.
The delays are not expected to affect any key programmes due to be aired, while job losses are also not on the cards as a result of the latest cost savings push.
Carolyn McCall, ITV chief executive, said: “UK macro data is showing a softening economy, with increased uncertainty in the lead up to the UK Budget which is impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand.”
But she said the group continues to have a strong slate of year-end programmes, with the next series of I’m A Celebrity… due to air from the end of next week and the men’s Football World Cup coming in 2026.
Shares in ITV fell 1% after the update.
Its ad revenues caution comes after it saw flat total advertising revenues in its third quarter, which it said was better than expected.
Ad revenues are 5% down in the year so far and are now expected to fall by around 6% over the full-year.
ITV said in July it was upping its savings target by another £15 million on top of £30 million previously announced, with technology among efforts to drive the latest round of cost cutting.
