ITV Full-Year Profit Rises

LONDON: ITV reported strong revenue growth for 2014, with pre-tax profit up 23 percent to £712 million ($1.09 billion) and a 6 percent gain in net ad revenue.

Group external revenue was up 8 percent to £2.6 billion ($3.9 billion), and for the fifth year in a row ITV achieved double-digit profit growth, up 18 percent to £730 million ($1.12 billion). Non-advertising revenue rose 10 percent to £1.3 billion ($1.99 billion), led by a 30 percent increase in online, pay and interactive.

ITV Studios saw a 9 percent increase in revenue to £933 million ($1.4 billion) and a 22 percent increase in profits to £162 million ($248 million).

The broadcast business had a strong year, with profit up 17 percent to £568 million ($871 million) and advertising revenue up 6 percent to £1.63 billion ($2.5 billion).

The outfit now plans to return £250 million ($383 million) to shareholders via a special dividend following these strong results.

Adam Crozier, ITV's chief executive, said: "ITV delivered another strong performance in 2014 as we continue to rebalance the business, drive new revenue streams and invest in our future growth.

"For 2015 we’re confident of further good revenue growth in all parts of ITV. In ITV Studios we’ll again see upside from our acquired businesses as well as a return to good organic growth as we continue to invest in creative talent and content. In our broadcast business, online, pay and interactive will deliver another strong performance and we expect again to outperform the TV advertising market.

"ITV is now a more balanced business with strong underlying cash flows. As we enter the next phase of our strategy we continue to see investment opportunities to grow the business and enhance shareholder value but at the same time the board recognizes the importance of maintaining capital discipline and balance sheet efficiency. Therefore it is appropriate over time to increase our balance sheet leverage gradually while retaining the flexibility to continue to invest.

"ITV is now a high growth business with increasing emphasis on international content creation and distribution, and is demonstrably much stronger, both creatively and financially, than when we set out on our five year plan. We remain firmly focused on our strategy and look forward to this year and beyond with enthusiasm and confidence."