ITV warns that economic uncertainty will hit advertising revenues
ITV's share price fell almost 3 per cent today to 150p as it predicted a dip in advertising revenue at the end of the year as continued economic uncertainty takes its toll on the broadcaster.
The channel's performance in the first nine months of the year was in line with expectations, recording a six per cent increase in total external revenue to £2.3bn compared to the same period in 2017, it said in a trading update.
Total advertising revenue grew by two per cent, largely driven by a 43 per cent growth in online advertising.
But the company warned that overall advertising revenue was likely to be down roughly three per cent in the fourth quarter and flat for the full year as economic uncertainty surrounding Brexit continues.
The news sent the broadcaster's shares down four per cent this morning.
However, the company, whose shows include I’m a Celebrity and Dancing on Ice, saw an increase in online viewing of 27 per cent for the year so far.
“We are very focused on executing our strategy to create a stronger, structurally sound business, building on our strong operating performance in the areas of the business which are under our control,” said chief executive Carolyn McCall.
Organic revenue was up seven per cent for ITV Studios. But the lack of popular cooking show Hells Kitchen in 2018 and a delay in sci-fi series Snowpiercer means full year growth is forecast as roughly three per cent.
In October the broadcaster scrapped plans to move back into its ITV headquarters, announcing it would sell the property and remain at its new site in Holborn.
ITV also ruled itself out of a race to buy production company Endemol, focusing instead on delivering entertainment shows from new territories in 2019, including Love Island US and Saturday Night Takeaway in Australia.
ITV faces growing competition from streaming services such as Netflix and Amazon, which spent a combined £150m on British TV shows last year.