ITV’s pre-tax profits were up 25% to £391 million for the six months to 30 June 2015, putting the commercial broadcaster on track for another strong year.
Despite a 4% decline in viewing figures, which chief executive Adam Crozier said remains a key area for improvement, total external revenue was up 11% to £1,356 million, while ad revenue increased by 5% to £838 million.
ITV Studios, the broadcaster’s production division, saw revenue jump 23% to £496 million as it further strengthened its international content arm with the acquisition of Talpa Media – maker of BBC One’s The Voice – and its UK studio business with the acquisitions of Twofour Group and Mammoth Screen.
Crozier said that the first half of the year represents “strong progress” in the growth and rebalance of the company – both creatively and commercially – and that ITV expects viewing figures to improve with the arrival of the exclusive rights to the Rugby World Cup as well as a “strong slate of high quality drama.”
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“Looking ahead to 2016 we have now secured the joint rights to Six Nations Rugby to add to our strong schedule of sport, drama and entertainment including the European Football Championships, Beowulf, Britain’s Got Talent and Seth MacFarlane’s Family Guy and American Dad,” Crozier added.
“Our outlook for the remainder of this year is unchanged and we expect to deliver another strong performance in 2015.”
Fiona Cincotta, a senior market analyst at www.finspreads.com, said: “Generally speaking the advertising market has been in good shape owing to an improving UK economy and this has acted as a solid backdrop for the broadcaster.
“Furthermore with the Rugby World Cup due to kick off in September, a strong demand for advertising slots around the games has also bolstered advertising revenue with net ad revenue expected to be up 6% in the nine months to the end of September, an improvement on the 5% hike in advertising revenue in the first half of the year.”
