Studios investment brings 3% revenue drop to ITV

  • Studios investment brings 3% revenue drop to ITV

Studios investment brings 3% revenue drop to ITV

British commercial broadcaster ITV said on Wednesday pressure on its advertising income should ease in the third quarter after it reported first-half results cushioned by solid demand in its production and online businesses.

"ITV's performance in the first six months of the year is very much as we anticipated and our guidance for the full year remains unchanged", Bazalgette said.

Revenue at ITV Studios rose by 7% to GBP697.0 million, driven by Studios UK, ITV America and Global Entertainment, but revenue in the larger Broadcast & Online division declined by 6% to GBP1.00 billion.

ITV had guided to a TV advertising revenue decline of around 8 percent-9 percent in the first half, with June hit by tough year-ago comparisons due to the Euro Championships soccer tournament in 2016.

Chairman Peter Bazalgette said advertising revenue was likely to continue its downward trajectory.

"ITV Studios adjusted earnings before interest, tax and amortisation will be broadly flat year-on-year impacted by continued investment and the timing of programme deliveries". The blue-chip broadcaster, however, lifted its interim dividend by five percent to 2.52p, reflecting the group's "confidence in the underlying strength of the business", and reiterated its full-year guidance.

Despite this, ITV remained positive about its production and distribution arm, saying that it has a strong pipeline of new and returning drama formats, while looking to build further momentum in the U.S. scripted business. We have a very strong pipeline of new and returning drama and formats and we are building momentum in our USA scripted business.

ITV said online, pay and interactive revenues were up 5% to £112m, with online viewing up 34%. The company does however expect ITV Family NAR forecast to be down around 4% for the third quarter of the year.

ITV recently named easyJet CEO and former CEO of The Guardian Media Group Carolyn McCall its new CEO, effective January 8, 2018. The company also said that it was continuing to invest in the US scripted business, which was still building momentum, with projects such as "Snowpiercer" in the works.