ITV’s profits will almost halve due to a slump in advertising, City forecasts show.
The broadcaster – whose shows include Love Island and Mr Bates Vs The Post Office – is expected to report a profit of £363 million for 2023.
ITV earned around £672 million last year.
Big hit: Mr Bates vs The Post Office was a big success for ITV, but forecasters think the broadcaster will report profits have halved
CEO Carolyn McCall has declared the ‘worst advertising recession’ since the 2008 global financial crisis.
The company expects full-year advertising to decline 8 percent compared to 2022, when revenues were slightly boosted by the World Cup.
Profits will also be hit by investments ITV has made in its streaming platform ITV X.
McCall has said 2023 would be the ‘peak year’ for spending on ITV
ITV hopes the ad-funded platform, which can be viewed ad-free for a subscription price, will offset the decline in the number of people watching its traditional television channels.
ITV on Friday sold its 50 percent stake in Britbox International, a streaming service that offers British programs outside the United Kingdom, to BBC Studios for £255 million.
McCall said this means ITV can focus on ITV X and growing its own studio division.