ITV Studios, the production arm of UK commercial broadcaster ITV, has revised its business expectations towards its 2026 expected trading. It suggests that it will double the already growing number of high-end streaming hours by 2026 from 200 hours to 400 hours.
In essence, ITV Studios says it expects trading for 2022 to have recovered to its pre-Covid 2019 position, and that it expects to grow revenues by around 5 per cent on average per annum henceforth .
A note to clients from investment bank Exane/BNPP suggests that it expects trading margins to be about 13-15 per cent. The bank’s pre-Covid expectations were a little higher at 14-16 per cent.
The bank adds that the group expects to continue to invest in scripted in content, saying: “For example, since 2015 it has doubled its proportion of scripted revenues from 15 per cent to around 30 per cent. The group now targets to double the number of high-end streaming hours by 2026 and expects also to increase the share of revenues from streamers to c25 per cent.”