ITV Profit Up, Production Business Strong

LONDON: ITV has reported a 25-percent hike in adjusted pre-tax profit to £391 million ($609 million) in the six months to June 30, with ITV Studios delivering a solid first half.

Group external revenue increased 11 percent to £1.36 billion ($2.12 billion), with 6-percent growth in broadcast and online revenue to £1.04 billion ($1.62 billion) and 23-percent growth in ITV Studios revenue to £496 million ($773 million). ITV Family share of viewing was down 4 percent in the first half, with the decline in the main channel partly offset by a 2-percent improvement across its digital bouquet of channels.

In regard to the production business, Studios UK revenue was up 1 percent in the first six months to £208 million ($324 million), with an 11-percent growth in internal revenue partly offset by a decline in off-ITV commissions due to the loss of some commissions and phasing of program deliveries. Studios US grew strongly in the first half, with revenue up 69 percent to £145 million ($226 million), benefiting from organic growth, up 21 percent, as well as a full six months of Leftfield Entertainment (acquired in May 2014). For the rest of the world, there were gains of 41 percent to £72 million ($112 million), with organic revenue up 4 percent.

The distribution business, ITV Studios Global Entertainment, increased revenue by 18 percent in the period to £71 million ($110 million), bolstered by a strong drama slate that included Poldark and Schitt’s Creek, as well as the U.S. drama Aquarius and the benefit of Thunderbirds Are Go.

Adam Crozier, ITV's chief executive, said: “ITV made further strong progress in the first half of the year as we continued to grow and rebalance the company creatively and commercially. All parts of the business performed well with external revenue up 11 percent to £1.36 billion ($2.12 billion) and we delivered another period of double digit profit growth up 24 percent to £400 million ($623 million).

“We continue to grow non-advertising revenue with online, pay an interactive revenue up 27 percent and ITV Studios revenue up 23 percent, driven by organic growth and through our acquired businesses.

“More than half of ITV Studios revenue now comes from outside the U.K. and we further reinforced our position as a leading international producer with the acquisition of Talpa Media. We have also continued to strengthen our U.K. studios business with the acquisitions of Mammoth Screen and Twofour Group.

“Our broadcast and online business remains strong with profit up 26 percent to £315 million ($491 million) and revenue up 6 percent to £1.04 billion ($1.62 billion), helped by 5-percent growth in advertising revenue and the launch of our pay channel ITV Encore.

“ITV Family share of viewing was down 4 percent in H1 and improving SOV remains a key focus for the year. As previously stated we expect to see improvements in H2 when we have exclusive rights to the Rugby World Cup as well as a strong slate of high-quality drama, including Jekyll & Hyde, Unforgotten and The Trials of Jimmy Rose.

“Looking ahead to 2016 we have now secured the joint rights to Six Nations Rugby to add to our strong schedule of sport, drama and entertainment, including the European Football Championships, Beowulf, Britain’s Got Talent and Seth MacFarlane’s Family Guy and American Dad.

“Our outlook for the remainder of this year is unchanged and we expect to deliver another strong performance in 2015.”