ITV has posted strong financial results for 2014, delivering revenue growth across all parts of the business.
Total ITV revenue increased 7% in 2014 to £2,956 million – marking the company’s fifth consecutive year of double digit profit growth – while advertising revenue saw a healthy 6% boost to £1,629 million.
Broadcast and online recorded another solid performance with revenue up £127 million to £2,023 million, driven by growth in ad revenue and continued strong growth in online, pay and interactive revenue (up 30% year on year). ITV Studios saw revenue increase by almost £80 million.
While ITV’s share of viewing on linear TV was down in 2014, the broadcaster’s CEO, Adam Crozier, has said that it is “firmly focused” on improving viewing figures in 2015, bolstered by a range of new content. ITV also expects gaining exclusive rights to the Rugby World Cup, which takes place this Autumn, to improve viewing figures further.
In contrast, ITV’s video on-demand viewing was up 26% in 2014, with Crozier saying that it is now “well placed” to take advantage of the growth in viewing on connected TVs – including through its investments in YouView, Freeview Play and Freesat.
“ITV is now a high growth business with increasing emphasis on international content creation and distribution, and is demonstrably much stronger, both creatively and financially, than when we set out on our five year plan,” said Crozier.
“We remain firmly focused on our strategy and look forward to this year and beyond with enthusiasm and confidence.”
Commenting on the results, Fiona Cincotta, a senior market analyst at Finspreads, said ITV worked hard in 2014 to push itself forward in an increasingly competitive market.
“The extra effort seems to have paid off,” she said. “Acquisitions of US TV companies have boosted international revenue significantly and the launching of new channels along with the embracing of new technology has given the market plenty to cheer.
“2015 has also started well for ITV with net advertising revenue up 11% in the first quarter and an announcement of an increase to the dividend of 34%. All this good news has been captured by investors, who sent the share price over 5% higher in morning trading.”
ITV expects continued growth through 2015.
