SOV falls but numbers strong for ITV in first half of 2015

DetailsEditor | 28 July 2015

Capitalising on the general economic conditions in the UK, ITV has revealed strong half-yearly figures and believes it is well set to prosper further over the next six months.

ITVIn interim results for the six months to 30 June 2015, the UK's leading commercial broadcaster reported revenue growth across all parts of the business and continued to deliver double-digit profit growth. Total external revenue was up 11% year-on-year to 1.356 billion with a 5% growth in net advertising revenue (NAR) to 838 million. Non-NAR revenue showed annual growth of 18% to 693 million. These were the drivers for adjusted EBITA to climb 24% compared with the first half of 2014 to 400 million.

Looking at individual lines of business, the key ITV Studios division which has spent the last few years making numerous strategic acquisitions such as Talpa Media, Twofour Group and Mammoth Screen grew revenue 23% year-on-year to 496 million with organic growth a respectable 8%. ITV Studios adjusted EBITA increased 18% to 85 million. Business at the online, pay & interactive division swelled revenue by 27% to 85 million while broadcast & online adjusted EBITA was 315 million up 26% year-on-year.

Yet ITV conceded its family share of viewing (SOV) was down 4% in the first half of 2015, with performance impacted by strong competition from the BBC, no major sporting event and some shows not performing as well as expected. ITV assured that improving SOV was a key focus for the year. The channel has high hopes that improvements in this area will be delivered from the forthcoming Rugby World Cup, to which it has exclusive rights, as well as a new slate of high-end drama.

"ITV made further strong progress in the first half of the year as we continued to grow and rebalance the company creatively and commercially," said ITV plc chief executive Adam Crozier. "More than half of ITV Studios' revenue now comes from outside the UK and we further reinforced our position as a leading international producer with the acquisition of Talpa Media. We have also continued to strengthen our UK studios business with the acquisitions of Mammoth Screen and Twofour Group ... Our outlook for the remainder of this year is unchanged and we expect to deliver another strong performance in 2015."

Crozier further asserted that the company was on track for another strong performance with revenue growth across the business. ITV expects ITV Family NAR to grow 6% for the nine months to the end of September, around 8% in Q3, and is confident that it will outperform the market in 2015 as a whole with notable growth in online, pay & interactive. It added that ITV Studios was on track to deliver strong revenue growth over the full year, with good organic growth and acquisitions coming through as planned.