As a seasoned gamer with a knack for following the twists and turns of the entertainment industry, I must say that ITV’s performance this year seems like a rollercoaster ride – albeit one without the thrilling drops and soaring highs that games usually offer!
On Thursday, ITV, the prominent British television company under the leadership of CEO Carolyn McCall, disclosed a 20% decrease in revenue for its ITV Studios production division. This decline was attributed to the timing of deliveries and the potential effects of the 2023 U.S. writers’ and actors’ strike.
Despite anticipating a minor decrease in annual revenue for ITV Studios within the mid-single digit percentage range, the studio is on course to achieve an all-time high in adjusted earnings before interest, taxes, and amortization for the entire year 2024. This impressive result is attributed to operational efficiencies and a robust fourth quarter delivery plan. However, it’s important to note that when factoring out the impact of U.S. actors’ and writers’ strikes, the company’s revenue will only show a minimal decrease compared to the previous year.
Meanwhile, total advertising revenue was flat in the third quarter, as projected by the company.
In the nine-month period ending on September 30, the streaming platform ITVX demonstrated robust performance, witnessing a 14% increase in streaming hours and a 15% rise in digital ad revenue.
The projected total ad revenue for the entire year 2024 is approximately 2.5% higher, but the fourth quarter is expected to drop around 6-7%, compared to the 2023 Rugby World Cup. This dip is also due to the decrease in advertising bookings during the fourth quarter, which was influenced by the uncertainties surrounding the U.K.’s budget, recently announced by the new Labour Party government.
As a devoted viewer, I’m thrilled to share some exciting news from ITV! They’ve outlined their progress on cost-cutting measures, revealing they aim to achieve an extra £20 million in savings by 2024. Here’s the breakdown: £10 million is expected to come from reduced content expenses, and another £10 million will be realized earlier than planned, from non-content savings initially slated for 2025. This strategic move strengthens their conviction that they will boost their overall profitability this year!
In the initial nine months of 2024, ITV’s strategic growth has persistently thrived, thanks to effective execution and innovative leadership in creativity, according to McCall. Despite the anticipated influence of the writer’s strike and a less dynamic market from free-to-air broadcasters, ITV Studios remains robust.
She stated, “Studios is currently experiencing strong creative and commercial momentum. This has been evident in recent weeks with shows like ‘Rivals’ on Disney+ and ‘Ludwig’ on the BBC. We are projected to see significant revenue growth in both 2025 and 2026.
ITV Studios is on target to produce a larger-than-usual quantity of shows during this fourth quarter, as suggested by the CEO. Among these anticipated productions are “The Better Sister” for Amazon Prime Video and “Hell’s Kitchen” for Fox in the U.S., along with “Shetland” for BBC, “Destination X” for both BBC and NBC, and “The Forsytes” for PBS Masterpiece.
For the initial nine months of 2024, ITV’s earnings decreased by 8%, a situation where an increase in overall advertising income was counteracted by a drop in ITV Studios’ revenue.
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2024-11-07 11:24