Studios drive ITV to outperform financial expectations
Joseph O'Halloran# | 19-11-2013
Odd numbered years without major sports events usually spell trouble for commercial TV, but ITV has bucked the trend over the first three-quarters of 2013.
In an interim management statement for the nine months to 30 September 2013, the UK’s largest independent broadcaster grew its total revenues from Broadcast & Online and ITV Studios 5% year-on-year to £1.897 billion. After taking into consideration internal supply costs of £233 million, total external revenues were up 6% year-on-year to £1.664 billion.
These figures show a conspicuous rise, 11%, in non-national advertising revenues (NAR) to £810 million. Showing where the growth really is — 1% growth in NAR and 17% growth in Online, Pay & Interactive — ITV Broadcast & Online revenue was £1.342 billion, a year-on-year increase of 3%. Also at the heart of the rise was continuing strong growth of ITV Studios which posted revenues of £555 million, up 11%.
In addition to the revenue growth, ITV also made traction in cost savings, shaving around £25 million from overheads to gate in 2013, £5 million ahead of original target.
Commenting on the trends revealed in the statement, ITV chief executive, Adam Crozier, said: “We continue to make good progress with our strategy of growing and strengthening ITV both creatively and commercially, and all parts of the business are performing well.
"We’re confident of a strong performance over the full year ...The television advertising market is showing signs of improvement, which will benefit the core broadcast business, and we expect to deliver double digit revenue growth in Online, Pay & Interactive … ITV is now a stronger and more balanced business and as we move into 2014 we will continue to see growth across the company.”