ITV First-Half Ad Revenue Jumps 10 Percent, But Studios Arm Posts Drop After Hollywood Strikes

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As a dedicated gamer with a deep passion for media and technology, I’ve kept a close eye on the latest developments at ITV, one of the U.K.’s leading broadcasters. With a background in tech journalism, I’ve seen firsthand how traditional media companies have had to adapt to the digital age, and ITV is no exception.

In the gaming world of business, ITV, a prominent U.K. TV broadcaster, shared its first-half earnings report for the year 2024 on a Thursday. The overall revenue took a slight hit, but advertising revenue experienced a noteworthy boost of around 10 percent. Interestingly enough, the second quarter saw an impressive surge of 17 percent in advertising revenue, which can be attributed to the electrifying UEFA Euro 2024 soccer tournament that unfurled in June and July.

Previously, ITV anticipated a 12% increase in advertising revenue during the second quarter and an 8% growth for the entire first half.

In the initial half of 2024, ITV Studios experienced a 13% decrease in revenue. This reduction can be attributed to the unusual timing of income receipts and the predicted consequences of the ongoing U.S. writers’ and actors’ strike.

On Thursday, ITV, with CEO Carolyn McCall at the helm, highlighted the progress of its streaming platform ITVX. The majority of ITVX’s revenue comes from advertising, but it also offers a subscription-based, ad-free tier.

In the first half of 2024, the company experienced a 2% decrease in its total external revenue, amounting to £1.90 billion ($2.45 billion). This represents a 3% decline from the previous period. Despite this revenue drop, EBITA – an important measure of profitability – surged by 40%, reaching £213 million ($275 million). This growth can be attributed to the efficiency gains in Media & Entertainment and the increased profits in ITV Studios, as well as the successful implementation of cost savings amounting to £23 million.

Moving forward, ITV anticipates that total advertising revenue for the third quarter of 2024 will remain relatively unchanged compared to the same timeframe in 2023 which featured the Rugby World Cup. However, there is predicted growth in digital advertising revenues during this period.

McCall spoke about ITV’s significant transformation over the past five years and their ongoing efforts to build upon this progress. They are optimistic about achieving higher adjusted EBITA this year, after reaching peak net investment in 2023. ITV is expected to meet its 2026 objectives based on its current strong performance from ITV Studios. Despite the challenging market conditions, ITV Studios is projected to set a new record for adjusted EBITA in a full year due to its size, diverse product and customer base, creative excellence, and initiatives aimed at improving efficiency.

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2024-07-25 09:24