29th of Jul 2024 | Source: ITV UK
In the first half of 2024, ITV's digital ad revenue surged by 17%, propelled by a revival in the TV ad market. Despite a 13% dip in its studio business due to the previous year's Hollywood strike, ITV's overall revenue dipped only 3%, totaling £1.9 billion. The impressive performance of the ITVX BVOD service played a crucial role, with total streaming hours up by 15%.
Carolyn McCall, ITV's CEO, highlighted the digital ad growth, stating, "Our digital ad business continues to expand, with this quarter's digital ad revenue up by 17%, contributing to a 10% rise in total ad revenue." She credited this success to strong ratings for ITV channels and ITVX, especially in Europe, where shows like "Love Island" experienced significant year-on-year viewership growth, along with a compelling lineup of dramas.
ITV Plc Interim Results for H1 2024: A Comprehensive Overview
Key Highlights:
Group Adjusted EBITA: Up 40% despite a 2% decline in external revenue.
ITV Studios Revenue: Fell by 13% due to production phasing and 2023 US strikes; however, adjusted EBITA grew 5% due to higher-margin catalogue sales and cost savings.
M&E Adjusted EBITA: Increased by 230%, with total advertising revenue up 10%.
ITVX Performance: Streaming hours up 15%, monthly active users up 17%, and digital advertising revenues up 17%.
CEO Insights:
Carolyn McCall, ITV Chief Executive, stated that ITV has been transformed over the past five years, continuing to build on this momentum. The company is confident in delivering increased adjusted EBITA this year and is on track to meet 2026 KPI targets. Despite challenges, ITV Studios is performing well, expected to deliver record adjusted EBITA for the full year.
Digital Advertising:
The digital advertising business continues to strengthen, with a 17% increase in digital advertising revenue, contributing to a 10% rise in total advertising revenue. This success is attributed to strong viewership across ITV channels and ITVX, particularly with the successful Euros and year-on-year increases in "Love Island" viewership and compelling dramas.
Operational Efficiency:
ITV is focused on improving efficiency and simplifying operations, on track to deliver £40 million in incremental savings for 2024, including £30 million from a new strategic restructuring and efficiency program.
Outlook for 2026:
ITV Studios: Expected to deliver record profits for the full year, driven by higher-margin catalogue sales and efficiency actions. Revenue will be impacted by the 2023 US strikes, delaying approximately £80 million of revenue to 2025.
Revenue Forecast: FY 2024 revenue is expected to be down slightly due to key productions being contracted as executive productions rather than co-productions, impacting revenue recognition but not profit.
Long-Term Growth: ITV Studios aims for 5% organic revenue growth annually from 2021 to 2026, ahead of the market, with a margin of 13-15%.
The full report can be downloaded here.
Half year results for the period ended 30 June 2024 (Free)
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