Studios Division Drives ITV Revenue Gains

Full-year revenues at ITV plc were up 3 percent to £3.3 billion ($4.3 billion), led by its production and distribution division as ad revenues slipped by 1.5 percent.

“Thanks to the hard work of our teams across the business, our full-year results have come in ahead of expectations, helped by revenue growth in the second half of the year in ITV Studios, advertising and online,” said Carolyn McCall, chief executive. “We are making good progress in each area of our strategy and our investments in data, technology, online and in streaming will enable ITV to be a sustainable, diversified and structurally sound digital media and entertainment business.”

ITV is expecting ad revenues to be up 2 percent in Q1, while April is projected to see a 10 percent reduction. “In March and April, we have seen an impact from travel advertising deferments relating to the coronavirus.”

Total ad revenues in 2019 were £1.8 billion ($2.3 billion), with total broadcast revenues down slightly to £2.1 billion ($2.7 billion). ITV Studios’ revenues, meanwhile, were up 9 percent to £1.82 billion ($2.4 billion).

“Our outlook for the full year 2020 remains on track to deliver our medium-term targets,” McCall said. “We have started the year well with very strong online viewing up 89 percent, driven particularly by The Masked Singer and Love Island. ITV’s Family SOV [share of viewing] is flat year to date and we have a strong schedule coming up with the return of Saturday Night Takeaway, new entertainment show The Epic Gameshow, dramas including the second series of The Bay, and Quiz, and the European Football Championships.

“Despite the ongoing economic uncertainty around the outlook for the U.K/ following its departure from the European Union, we currently remain on track to deliver our medium-term targets. At this stage, it is too difficult to assess the further implications of the Coronavirus but we continue to monitor the situation closely. We are clear about what we need to do and it requires a relentless focus on delivery to build a stronger, more diversified and structurally sound business. Our people have embraced the changes we are making and are fully committed and enthusiastic about delivering the strategy. We have strong foundations in place and the next phase of the strategy will further position ITV to take advantage of evolving viewing and advertising trends as we become a digitally-led media and entertainment company.”