ITV PLC on Wednesday reported a rise in total revenue rise in the first nine months of 2022, driven by a big increase for ITV Studios, but suffered lower advertising revenue due to "tough comparatives".
Shares were down 6.2% at 68.52 pence each on Wednesday morning in London. They are down 37% over the past 12 months.
For the nine months that ended on September 30, the London-based television broadcaster and content producer said total external revenue was £2.52 billion, up 5.9% from £2.38 billion a year ago.
Total non-advertising revenue was £1.62 billion, up 13% from £1.43 billion. This represents over 50% ITV's total revenue.
However, total advertising revenue was down 2.2% to £1.33 billion from £1.36 billion a year ago. For the third quarter alone, total advertising revenue was down 14%, with "July down 9%, August down 21% and September down 14% compared to the same periods in 2021", ITV said, blaming "tough comparatives".
In ITV Studios, revenue was up 16% to £1.39 billion from £1.19 billion a year ago. The company said it expects ITV Studios revenue to exceed 2019 revenue of £1.12 billion in 2022. It also expects ITV Studios to deliver revenue growth in excess of its 5% medium-term target in 2023.
Furthermore, ITV said it remains committed to delivering ITV Studios adjusted earnings before interest, tax, depreciation and amortisation margin guidance of 13% to 15% from 2023. But in the shorter term, it expects the margin to be at the lower end of the range as a result of the current inflation in the production market.
In ITV Media & Entertainment, ITV said revenue during the period was £1.56 billion, down 1.9% from £1.59 billion a year earlier "as expected against tough comparatives".
ITV said ad-funded streaming service ITVX will be rolled out across devices and platforms in the coming weeks with the full launch on December 8.
Chief Executive Carolyn McCall said: "While we remain mindful of the macroeconomic and geopolitical uncertainty, there's strong operational momentum across both our Studios and Media & Entertainment divisions, as we continue to build a resilient, diversified business that can take advantage of the global growth in the demand for quality content and the desire of advertisers for both mass reach and data-led addressable advertising, targeting millions of UK viewers."
In July, ITV said pretax profit for the six months that ended on June 30 surged 65% to £219 million from £133 million the same period a year before, as external revenue increased 8% annually to £1.68 billion from £1.55 billion.
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