Profit Up at ITV

February 29, 2012 World Screen Top Stories
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LONDON: ITV has posted a 14-percent gain in pre-tax profits for 2011 to £327 million.

ITV reported a better-than-expected 13-percent rise in full-year earnings, which reached £462 million, on external revenues that were up 4 percent, to £2.14 billion. The British commercial broadcaster posted adjusted pre-tax profits up 24 percent to £398 million. There was a £93 million year-on-year increase in non-advertising revenue, representing an 11-percent year-on-year boost to £922 million.

Broadcast and online revenues rose 3 percent in 2011 to £1,820 million. Total revenues for ITV Studios grew by 10 percent for the year to £612 million.   

Adam Crozier, the CEO of ITV, said: “We’re now almost two years into our five-year Transformation Plan and our continued growth in revenue and profit—at a time when the advertising market is broadly flat—demonstrates that we’re performing in line with our strategic priorities. The increase in non-advertising revenues of £93m, driven by our studios and online businesses, is clear evidence of progress in rebalancing the Company and our ability to grow new revenue streams.

"Our financial position was further strengthened during the year through our ongoing focus on cash generation and cost reduction. We have our first positive net cash position since ITV was created in 2004 and more than delivered our targeted cost savings. ITV Studios, under the new management team, has made real progress creatively and operationally both in the U.K. and internationally. We have delivered double digit revenue growth and a 28-percent increase in new commissions to 111, of which 45 are international.

"On screen we have grown family SOV and we continue to outperform the advertising market. We have seen strong growth in online video views as ITV Player was rolled out across more platforms. The VOD and pay deals we recently signed with Sky, Netflix and Lovefilm open up new pay revenue streams, which we will continue to build as part of our pay strategy. Although ITV Family NAR has started the year better than we anticipated, it is expected to be down 2 percent in Q1 against tough comparatives. We remain cautious on the market outlook for 2012 but we expect to outperform the market for the full year.

"We’ve made good progress and we remain focused on rebalancing the business and delivering the Transformation Plan. We will increasingly look to content, pay and online as the engines of growth in the U.K. and internationally as we invest further in our key strategic priorities.”