ITV sees ad revenue fall in the year to September and forecasts dip in end of year results
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ITV predicts a slowdown in advertising spending despite the World Cup and I’m a Celebrity boost for the broadcaster
- ITV saw its ad revenue fall 2% in the year to September
- The Group forecasts a 1-1.5% decline in advertising revenue for the full year 2022
- ITV’s total turnover is up 6% in the first 9 months of the year to £2,523 million
ITV’s total advertising revenue fell 2 percent in the year to September, with the national broadcaster’s media and entertainment division also seeing a revenue decline.
Looking ahead, the group, home of I’m a Celebrity Get Me Out Of Here, expects total ad revenue to fall by 1 to 1.5 percent year-on-year by 2022, despite the expected revenue increase from broadcasting the FIFA World Cup.
The relative decline in sales to September is likely the result of weaker advertising compared to the summer of 2021, when UEFA European Football Championship attracted a huge audience.
ITV is home to popular shows including I’m a Celebrity Get Me Out Of Here! and Love Island
The broadcaster saw revenues of £2.5 billion from January to September this year, up 6 percent from around £2.4 billion in the same period in 2021.
The company’s non-advertising revenues accounted for more than half of its total income, rising 13 percent to £1.6 billion.
ITV’s studio division saw revenues jump 16 per cent to £1.4 billion, with ‘faster than market growth’, the company said in a statement to the London Stock Exchange.
Carolyn McCall, ITV chief executive, said: “While we remain aware of the macroeconomic and geopolitical uncertainty, there is strong operational momentum in both our Studios and Media & Entertainment divisions as we continue to build a resilient, diversified business that can capitalize on the global growth in demand for quality content and advertisers’ desire for both mass reach and data-driven addressable advertising targeting millions of UK viewers.”
Next month, ITV will roll out its new streaming service ITVX, which will offer over 10,000 hours of free content, including one of the UK’s largest free movie libraries with over 250 titles and over 200 series available at launch.
ITVX is expected to generate significant digital viewing and revenue growth, enabling ITV to generate at least £750 million in digital revenue by 2026.
In the nine months to 30 September 2022, streaming revenues on ITV Hub, ITV Hub+ and BritBox UK grew by 10 percent.
ITV shares fell more than 6 percent this morning to 68.74 pence, but is up 35 percent from a two-year low in September, aided by a report saying it is considering selling a stake in its Studios business.