First Half Ad Gains for ITV

Improved advertising results boosted ITV plc’s media and entertainment revenues in the first half, while ITV Studios saw a dip, largely due to ongoing impacts from last year’s Hollywood strikes.

Total revenues at the British media company fell by 3 percent to £1.9 billion ($2.45 billion), with adjusted EBITA up 40 percent to £213 million ($274 million).

“ITV has been transformed over the last five years and we continue to build upon this,” said Carolyn McCall, chief executive. “We are confident of delivering increased adjusted EBITA this year, following the year of peak net investment in 2023, and are on track to deliver our 2026 KPI targets.

Media and entertainment revenues were up 7 percent to £1.03 billion ($1.3 billion), with total ad revenues up 10 percent, including a 17 percent gain in digital advertising. ITV Studios saw its first-half revenues slip by 13 percent to £869 million ($1.1 billion).

“ITV Studios is performing well despite the expected market backdrop and is forecast to deliver record adjusted EBITA over the full year as a result of its scale, its diversification by product, geography and customer, its outstanding creative output and the actions we are taking to drive efficiencies,” McCall said.

“Our digital advertising business continues to go from strength-to-strength and we saw a 17 percent increase in digital advertising revenue in the period, which contributed to the 10 percent increase in total advertising revenue. This was driven by strong viewing across our broadcast channels and ITVX, with a very successful Euros, a year-on year-increase in viewing of Love Island and a slate of great dramas.

“We have strong momentum in improving efficiency and simplifying ways of working right across ITV and are on course to deliver the £40 million of incremental in year savings in 2024 that were previously guided. This includes £30 million of additional savings as part of the new strategic restructuring and efficiency program.”