Despite a 3 percent slip in revenues, ITV plc delivered an adjusted group EBITA that was up 11 percent, bolstered in part by record profits at ITV Studios.
“Three years ago, we announced the second phase of our ‘more than TV strategy and today’s results show our significant progress and success in navigating the rapidly changing media industry,” said Carolyn McCall, chief executive. “ITV Studios has delivered record profits this year, despite the one-off impact of the writers’ and actors’ strikes and a softer demand from free-to-air broadcasters, which reflects the strength, scale, diversification and creativity of ITV Studios production companies across the world. ITVX has been the U.K.’s fastest-growing streaming platform over the last two years and coupled with our programmatic advertising platform, Planet V, has delivered significant growth in both digital viewing and revenues and is providing attractive returns.”
McCall continued, “Our efficiency program has delivered savings which have funded growth investments, offset inflation and improved our margins. The program is ongoing and will continue to be viewer led—driving efficiencies and prioritizing our investment to best reflect viewer dynamics and attract both mass reach audiences on linear and targetable audiences on ITVX. Our significant competitive advantages give us confidence that we will continue to deliver good growth in both ITV Studios and digital revenues, underpinned by the powerful reach and strong cash generation of broadcast. And we are becoming a more resilient business with content production and digital now accounting for close to two thirds of our revenue. Our ongoing transformation ensures we are an adaptable and agile company, well positioned to deliver good profitable growth, strong cash generation and attractive returns to shareholders.”
Overall revenues fell by 3 percent to £4.1 billion ($5.3 billion) with an adjusted EBITA of £542 million ($699 million). Within ITV Studios, EBITA rose by 5 percent £299 million ($385.5 million) on revenues of £2.03 billion ($2.6 billion), a 6-percent reduction due to the impacts of the Hollywood strikes and “softer demand” from free-to-air broadcasters. Media and entertainment was largely flat at £2.1 billion ($2.7 billion), with total ad revenues up 2 percent, including a 15 percent boost in digital ad revenues.
