ITV has announced a 3% decrease in total Q2 revenue, bringing it to £1.9 billion (€2.26 billion). This decline was driven by a predicted drop in ITV Studios revenue, which offset gains in total advertising revenue (TAR).
Furthermore, for the period ending June 30th, the company also reported a 2% reduction in total external revenue, totaling £1.59 billion. However, group adjusted EBITA saw a significant increase of 40%, reaching £213 million, due to the operational efficiencies in Media & Entertainment, improved margins in ITV Studios, and the achievement of £23 million in cost savings.
Carolyn McCall, ITV Chief Executive, said, “ITV has been transformed over the last five years and we continue to build upon this. We are confident of delivering increased adjusted EBITA this year, following the year of peak net investment in 2023, and are on track to deliver our 2026 KPI targets. ITV Studios is performing well despite the expected market backdrop and is forecast to deliver record adjusted EBITA over the full year as a result of its scale, its diversification by product, geography and customer, its outstanding creative output and the actions we are taking to drive efficiencies.”
ITV Studios reported a 13% decline in H1 revenue, largely due to the timing of productions and the 2023 US writers’ and actors’ strikes, totaling £889 million. Despite this, adjusted EBITA rose by 5%, supported by strong contributions from higher-margin catalogue sales and cost-saving measures.
Additionally, driven by increased catalogue sales and ongoing efficiency efforts ITV expects record profits for the full year. However, the company noted that the full-year margin would be slightly lower than the first half, due to a reduced proportion of catalogue sales in the latter half of the year, but will still fall within the 13 to 15 percent guidance range.
Notably, for ITV, ITVX has been a strong performer with streaming hours increasing by 15%, monthly active users growing by 17%, and digital advertising revenues also rising by 17%.
Carolyn McCall, ITV Chief Executive, concluded by saying, “We have strong momentum in improving efficiency and simplifying ways of working right across ITV and are on course to deliver the £40 million of incremental in year savings in 2024 that were previously guided. This includes £30 million of additional savings as part of the new strategic restructuring and efficiency programme.”