Content Production Arm Drives Gains at ITV

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LONDON: Total external revenues rose by 15 percent to £3 billion ($4.2 billion) at ITV in 2015, with ITV Studios’s revenues up by 33 percent to £1.2 billion ($1.7 billion).

More than half of ITV Studios’s revenues came from outside of the U.K. ITV America contributed revenues of £320 million ($448 million), a 36-percent gain. ITV Studios Rest of World more than doubled its revenues to £213 million ($299 million). ITV Studios Global Entertainment had revenues of £157 million ($220 million), a 9-percent increase.

The group delivered £1.7 billion ($2.4 billion) in net advertising revenues for the period, reflecting a 6-percent gain. Adjusted profit before tax for the company was £843 million ($1.2 billion), 18 percent higher than the 2014 results.

“ITV delivered another strong year as we continue to grow and strengthen the business in the U.K. and
internationally,” said Chief Executive Adam Crozier.

“While our family share of viewing was down 3 percent for 2015 we have started this year well with SOV [share of viewing] on our main channel up 5 percent and ITV Family SOV up 2 percent. We have a strong program slate for 2016, with 50 hours more drama as well as major rugby and football tournaments. ITV uniquely delivers the mass audiences demanded by advertisers. Continuing to deliver this scale and reach, as well as further strengthening our onscreen performance, remains a key focus for the company and particularly for the new creative leadership in the broadcast business. ITV Studios continues to perform strongly both organically and from our recent acquisitions, particularly Talpa. Through our ongoing investment ITV Studios has become a global production business with total revenue up 33 percent to £1.2 billion and with 53 percent of revenues now coming from outside the U.K.”

The company has a positive outlook for 2016, projecting continued gains across both its advertising and ITV Studios business.

“We’ll continue to build scale and to capitalize on the strong demand for high-quality content that travels, with a particular focus on investing in creative talent and scripted projects, and working with more channels and platforms in the U.K. and internationally,” Crozier continued.

“Online demand for our content is growing strongly with people spending 42 percent more time watching ITV online in 2015 than the previous year. Overall, our Online, Pay & Interactive business is rapidly growing and profitable and is on track to deliver double-digit revenue growth again in 2016. We will continue to build our expertise in digital media to drive closer engagement with online audiences, develop more targeted and innovative advertising with new initiatives including AdSync+ and ITV AdVentures, and maximize our ability to monetize our content online as well as on pay channels.”

He concluded, “As we look to 2016 and beyond we see further significant opportunities for growth across the company organically and through acquisitions and partnerships. Reflecting ITV’s ongoing strength and confidence for future growth the Board is proposing a £400 million special dividend, equivalent to 10.0p per share. Our strong cash generation and robust financial position gives us the flexibility to invest in growing the business while at the same time delivering returns to our shareholders.”