Variety: ITV Grows Profits, Margins as It Battles Headwinds in First Half of 2024

Story from Variety:

British broadcast group ITV delivered a mixed financial performance for the first six months of 2024, as it continues to navigate a shifting media landscape.

ITV reported a significant 40% increase in adjusted EBITA (Earnings Before Interest, Tax and Amortization) to £213 million ($275 million) for the period ending June 30, 2024. This substantial growth came despite a 2% decline in group external revenue, which fell to £1.6 billion ($2.06 billion).

The company’s production arm, ITV Studios, experienced a 13% decrease in revenue to £869 million. This decline was largely attributed to the lingering effects of the 2023 U.S. writers’ and actors’ strikes, which caused delays in production schedules and delivery of content. Profits before tax increased 51% to £178 million.

On a more positive note, ITV’s Media & Entertainment division showed encouraging growth. Total advertising revenue increased by 10% to £889 million, with digital advertising revenue demonstrating particularly strong performance, with a 17% surge.

A bright spot in ITV’s results was the continued success of its streaming service, ITVX. The platform saw a 15% increase in streaming hours and a 17% rise in monthly active users.

ITV’s content strategy played a crucial role in driving viewer engagement across both traditional and digital platforms. The company highlighted the success of several productions, including the critically acclaimed drama “Mr Bates vs the Post Office.” The series, which told the true story of sub-postmasters wrongly prosecuted for theft due to a faulty IT system, not only garnered significant viewership but also reignited public interest in the real-life case. The company reported that 93% of viewers who watched this series on ITVX went on to engage with other content on the platform.

While ITV Studios is projected to deliver record profits for the full year, the company revised down its revenue forecast for this division, now expecting a slight decline rather than the previously anticipated flat performance. The adjustment reflects the ongoing impact of industry-wide challenges, especially changes in production arrangements.

Despite the headwinds, ITV reaffirmed its commitment to its 2026 targets, including the ambitious goal of growing digital revenues to at least £750 million.

CEO Carolyn McCall commented on the results, stating, “ITV has been transformed over the last five years and we continue to build upon this.” She expressed confidence in the company’s ability to deliver increased adjusted EBITA for the full year, highlighting the progress made in ITV’s digital transformation journey.