ITV sees double digit earnings for third year running
ITV has reported a positive start to 2013 with Q1 advertising expected to be up 5% and continued strong demand for ITV Studios content.
After releasing its full year results for 2012, the company has seen growth in all areas of the business with online, pay and interactive revenues up 26% to £102 million and ITV Studios revenues up £100 million, 16%, to £712 million
“We’re now almost three years into our Transformation Plan and our strong performance is delivering growth right across ITV, enabling us to build a stronger and more balanced business,” said ITV Chief Executive Adam Crozier.
External revenues were up 3% to £2.19 billion (compared to £2.14 billion in 2011), with growth in all areas of the business – and a further £30 million made in cost savings.
The double digit earnings have grown for the third year running, in what is a broadly flat advertising market. However, ITV’s audience is in high demand from advertisers and although ITV Family Share of Viewing fell by 3% due to the unprecedented number of major one-off events, the company do not expect it to impact its ad performance in 2013.
ITV now have non-advertising revenues of more than £1 billion, an increase of £114 million or 12% year on year.
Commenting on the results, Mostyn Goodwin, Partner, OC&C Strategy Consultants said: “With news of its double digit earnings growth, ITV is one of just a handful of large scale, UK focused media companies.
“ITV is finally starting to see some traction from its investments into content businesses. The success of its flagship creation, Downton Abbey, in the historically tough US market has given it a strong platform to build on, making it an obvious M&A target for prospective buyers.”
Crozier added: “We’re investing in Online, Pay & Interactive, which are now a material and rapidly growing part of ITV revenues.
“We’re positioning ourselves to take advantage of the opportunities arising from the increasing number of platforms needing high quality content and from changes in consumer behaviour, in particular the surge in mobile viewing.”