ITV warns of hit to ad revenue from coronavirus

UK broadcaster ITV said it expected a fall in travel-related advertising during April due to the coronavirus outbreak as it reported lower full year profits.

Full-year adjusted earnings fell 10% to £729m as ad revenue fell, although better than expected, the company said on Thursday. Pre-tax profit fell by 7% to £530m and the dividend was held at 8p a share.

First quarter revenue was forecast to rise by 2%, but ITV warned that early indications suggested a 10% fall in April.

The company said it expected ITV Studios would deliver revenue growth over the full year, although it would be impacted by the phasing of deliveries in 2019.

“Over the medium term we continue to expect that ITV Studios revenues will grow by at least 5% compound annual growth rate with a 14%-16% margin,” ITV said.

“We will deliver double digit growth in online revenues and growth in direct to consumer. At this stage it is too difficult to assess the further implications of the coronavirus but we continue to monitor the situation closely.”