ITV Profits Tumble By 32% But Green Shoots In Production Division As Broadcaster Kicks Off “Strategic Restructuring & Efficiency Programme”
07.03.2024 - 09:55
/ deadline.com
ITV profits tumbled by 32% following a tricky 2023 but there were green shoots in a solid performance from the Studios production arm, as the broadcaster reveals it is in the early stages of a “strategic restructuring and efficiency programme.”
Delivering its full-year results this morning, the UK’s biggest commercial broadcaster said adjusted EBITDA for the group had fallen 32% to £489M ($622M), with margin at 13% – down 6 percentage points.
Adjusted profit before tax fell by a sharper 41% to £396M. The commissioning team, known as Media & Entertainment, saw EBITDA slide by a whopping 56% to £205M.
ITV said the profit woes are due to “the decline in linear television advertising” and planned investment in streamer ITVX of £464M. Growth in digital advertising “substantially offset” a 15% decline in linear advertising, according to ITV. Total advertising revenue was down 8% to £1.8B.
Group turnover fell a tad by 2% to £4.2B but there was a slight increase in total non-advertising revenue, which ITV hailed.
The results come amidst tricky economic headwinds, with the recession seriously beginning to bite and the U.S. labor strikes having had some impact. ITV has previously said that the writers and actors strikes will delay around £80M of turnover from 2024 to 2025 and it also pointed to “weaker demand from free-to-air broadcasters in Europe who are holding back spend until they see more certainty in the advertising market.”
Content spend will be “marginally reduced” in 2024 to around £1.3B as “ITVX’s strong performance in 2023 has shown us that we can grow viewing significantly with slightly lower overall content spend,” the results said.
Production arm ITV Studios posted record turnover of £2.2B and was the only
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