ITV has reported that group revenue for the nine months to September 30th 2024 was down 8 per cent at £2.74 billion (€3.29bn) with growth in total advertising revenue (TAR) offset by the decline in ITV Studios revenue. Group external revenue was down 8 per cent at £2.32 billion.

Carolyn McCall, ITV Chief Executive, commented: “ITV’s good strategic progress has continued in the first nine months of 2024 driven by strong execution and industry leading creativity. ITV Studios is performing well despite the expected impact of both the writer’s strike and a softer market from free-to-air broadcasters.  ITV Studios has had an excellent start to Q4, in line with expectations, which will ensure it achieves record profits in 2024.  Studios has great creative and commercial momentum as demonstrated in the last few weeks with shows including Rivals for Disney+ and Ludwig for the BBC and is on track to deliver good revenue growth in 2025 and 2026.”

“ITVX continued its strong performance, delivering double-digit growth in streaming hours and digital revenues. ITV maintained its unique position in linear television through the quality and breadth of its schedule, and ITV1 was voted Channel of the Year at the Edinburgh TV Awards. Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced £40 million of incremental cost savings through restructuring, improved efficiency and simplifying ways of working. Coupled with our strategic delivery and revenue outlook, this continues to give us the confidence that we will deliver an increase in group profit this year,” added McCall.

ITV Studios

 Revenue performance for the nine months to 30 September 2024

• Total ITV Studios revenue was down 20 per cent at £1.21 billion impacted by the expected phasing of production deliveries which are heavily weighted to Q4 and the impact from both the 2023 US writers’ and actors’ strikes (which will delay around £80 million of revenue from 2024 to 2025) and lower demand from free-to-air broadcasters in Europe in the short term.
• During the period, ITV Studios delivered a range of new and returning programmes and formats in the UK and internationally to a portfolio of customers, including: My Mum, Your Dad for ITV, Queer Eye for Netflix, Showtrial for the BBC and Love Island US for Peacock.

Outlook

• Over the full year, ITV Studios expects to deliver record adjusted EBITA, at a margin within its 13 to 15 per cent target range. With the impact of the US strikes and lower demand from free-to-air broadcasters, total revenue is expected to decline by mid-single digits in 2024
• ITV Studios is on track to deliver a high number of productions in Q4 2024 which is expected to include, in the US: The Better Sister for Prime Video and Hell’s Kitchen for Fox; in the UK: Shetland for the BBC, Grace Season 5 for ITV, Destination X for the BBC and NBC, and The Forsytes for PBS Masterpiece; and Internationally: Petra for Sky Italia and Gladiators for TF1.
• ITV Studios is expected to deliver total organic revenue growth of 5 per cent on average per annum from 2021 to 2026 – ahead of the market.

Media & Entertainment (M&E)

• M&E revenue was up 4 per cent at £1.52 billion for the nine months, with TAR up 6 per cent in line with previous guidance:
  • Within this digital advertising revenue (a component of digital revenue) was up 15 per cent.
  • M&E non-advertising revenue was down 7 per cent, as expected.
• ITVX’s good performance has continued in Q3 with a range of programmes such as the Euros, Love Island, The Tower and Douglas Is Cancelled (pictured) driving total streaming hours up 14 per cent year-on-year over the nine months to September 30th. Monthly active users continue to grow in line with expectations.
• Digital revenues grew 11 per cent with strong growth in digital advertising revenue partly offset by the actions taken during the year to simplify the paid streaming proposition, which have an impact on subscriptions and subscription revenue.
• ITV has 92 per cent of the top 1,000 commercially broadcast TV programmes and 32.3 per cent share of commercial viewing on its linear television channels.

Outlook

• Over the full year, ITV expects TAR to be up around 2.5 per cent compared to 2023 with Q4 expected to be down around 6-7 per cent against the 2023 Rugby World Cup comparative, which gave ITV1 and ITVX their biggest audiences of the year. In addition, Q4 advertising bookings were impacted by the uncertainty in the lead up to the UK budget
• ITV expects total content costs over the FY 2024 to be around £1.26 billion, £10 million lower than previously guided.
• ITV remains on track to deliver at least £750 million of digital revenues in 2026

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Tags: itv, ITV Studios, ITVX, love island