ITV records solid growth
ITV has today reported that TV ad revenue for the first half of the year was down 3%, but the company expects a good third quarter with an anticipated 9% boost.
The company recorded a rise in non-net advertising revenue (NAR) of 11% according to the latest interim results, reaching £568 million, with a total external revenue up 1% to reach £1,144 million.
Overall, a 2% total revenue increase was recorded, up £30 million to £1,309 million.
“We’re making good progress with our strategy of growing and rebalancing the business as we build new revenue streams and improve margins,” said Adam Crozier, ITV chief executive.
“In the first six months of the year ITV continued to increase group profits and revenues despite the expected fall in our H1 advertising revenues. Non-advertising revenues were up by 11% to £568 million, driven by significant growth in Online, Pay & Interactive and in ITV Studios.”
ITV Studios delivered further growth in the UK and internationally with total Studios revenues up 11%. Crozier said ITV was showing real momentum in its strategy of creating a robust international content business and in building substantial strength and scale in the US market.
“The improved variety and quality of the ITV schedule has driven a strong on-screen performance in the first half of the year with ITV Family SOV up 1%,” Crozier continued.
“Our cash generation remains strong and we continue to have a robust balance sheet to support the strategy and invest in our future growth.
“As we anticipated, the shape of the television advertising market this year is very different to 2012. In spite of monthly volatility we expect ITV Family NAR to be broadly flat for the nine months to the end of September with Q3 up 9%. We expect both ITV Studios and Online, Pay & Interactive to deliver double digit revenue growth for the year as a whole as we continue to rebalance and strengthen ITV.”
ITV also recorded cost savings of £20 million which it will use to fund investments in creative development, technology and online.