ITV ad revenues to slump for whole of first half
Advertising revenue fell at ITV in the first quarter and is expected to remain down for the first half, though production sales from the broadcaster's Studios arm and online growth were both strong.
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Despite an increase in television viewing figures thanks to hit shows like Broadchurch, total external revenue shrank 3% to £731m in the three months ended 31 March, with net advertising revenue down 9% and expected to be down 8-9% for the first half.
While April NAR was up 5%, as previously indicated, May is expected to see an 8% decline and June a 15-20% decrease due to the tough comparison last year from Uefa's European Championships.
Profits in the first six months of the year will also be hit by an increased programming weighting to the first half and the phasing of deliveries from Studios.
However, while outgoing chief executive Adam Crozier acknowledged that the economic environment remains uncertain, he said the guidance for the full year remains unchanged.
This is helped by continued growth in the Studios business, which will be the Scot's main legacy when he steps down at the end of next month, where production revenue rose 7% at £343m with a good performance from ITV America plus some good benefits from the weak pound.
While online, pay and interactive revenue was up 12%, driven by 22% growth in online advertising, this contribution was not enough to offset the fall in TV NAR, meaning broadcast and online revenues were down 6% to £507m.
Crozier, who also hailed the Digital Economy Bill's paving the way for the introduction of retransmission fees, concluded: "We remain committed to our strategy of rebalancing and strengthening ITV. We see clear opportunities to invest for further growth across the business and our robust balance sheet and strong underlying cash flows allow us to continue to do so."