ITV profit rises after ‘very successful’ period with Euro 2024 and Love Island
UK broadcaster ITV reported a sharp increase in profit over the half-year as its studio business boomed on the Euros and hit-show Love Island, while last year’s advertising slowdown subsided.
On an adjusted basis, pre-tax profit rose over 50 per cent to £178m in the six months to July, despite a marginal three per cent decline in revenue, to £1.9bn. Earnings before interest, taxation and amortization (EBITA) also jumped 39 per cent to £212m.
ITV said its studios business, which has produced TV shows ranging from Mr Bates vs the Post Office to Love Island, is expected to deliver record profit annual profit, driven by higher sales and in spite of the impact of 2023’s US writers’ and actors’ strikes, which will delay around £80m of revenue.
In Media and Entertainment, adjusted EBITA grew a whopping 230 per cent, with total advertising revenue growth ahead of expectations, up 10 per cent.
Carolyn McCall, ITV Chief Executive, said: “ITV has been transformed over the last five years and we continue to build upon this. We are confident of delivering increased adjusted EBITA this year, following the year of peak net investment in 2023, and are on track to deliver our 2026 KPI targets.
She added: “ITV Studios is performing well despite the expected market backdrop and is forecast to deliver record adjusted EBITA over the full year as a result of its scale, its diversification by product, geography and customer, its outstanding creative output and the actions we are taking to drive efficiencies.”
It comes following a challenging set of annual results in March, in which ITV suffered a steep decline in traditional advertising revenues and set out plans to slash costs. The “restructuring and efficiency programme” is currently on track to deliver £40m of incremental in year savings in 2024.
Investors have backed the broadcaster’s strategy this year, with shares up over 34 per cent since January as advertising revenue stabilises.
“Our digital advertising business continues to go from strength-to-strength and we saw a 17 per cent increase in digital advertising revenue in the period, which contributed to the 10 per cent increase in total advertising revenue,” McCall said.
“This was driven by strong viewing across our broadcast channels and ITVX, with a very successful Euros, a year-on year-increase in viewing of Love Island and a slate of great dramas.”