ITV sees pre-tax profits rise despite decline in viewing

ITV has reported pre-tax profits of £250 million for the second quarter of 2014, despite a decline in viewing figures in the first six months of the year.

Reporting interim results for the half year ending 30 June 2014, ITV saw revenue growth across the entire business rise 7% to more than £1.2 billion.

Net advertising revenue was up 7% to £795 million whilst ITV studios recorded 14% growth to £72 million. Online, pay and interactive revenues grew 20% to £67 million.

However ITV’s share of viewing fell 3 percentage points from the previous year to 15.8%, although it showed an improvement over the first quarter thanks to the World Cup coverage.

“We have made further good progress with our strategy of growing and strengthening all parts of ITV,” said Adam Crozier, ITV chief executive. “In the first six months of the year we again delivered double digit profit growth in every area of the business and increased revenues by 7%.

“The economic recovery is leading to an improved advertising market, with good growth across all key categories and ITV is well placed to take market share.

“We enter the next phase of ITV’s growth strategy as a demonstrably better business than when we launched the Transformation Plan in 2010. The plan we embarked on four years ago of rebalancing and strengthening ITV creatively and financially, both in the UK and internationally, is clearly the right one for the Company and our vision remains unchanged.

“We will continue to rebalance the business and grow new revenue streams, both organically and through acquisition. We see clear opportunities for growth across the business – in content, online, pay and advertising and there will be an increasing emphasis on international content creation and distribution.”