ITV interims offer bleak revenue picture

FTSE 100 broadcaster ITV (LON:ITV) reported a 17% drop in revenues for the half year ended 30th June as advertising and studio income both fell despite a rise in viewing metrics. Production of new content restarted in June with some increased costs due to COVID restrictions and there has been some recovery in advertising trends during July and August. Given current uncertainty, the company is not offering guidance for the third quarter or the remainder of the year.

CEO Carolyn McCall commented: “This has been one of the most challenging times in the history of ITV. I am really proud of the way that our colleagues have responded to the COVID-19 pandemic and helped demonstrate the enduring value of ITV as a Public Service Broadcaster. ITV continues to inform and entertain the nation throughout this crisis, across our six channels including 10 hours of live broadcast every weekday as well as increased content on ITV Hub and BritBox.

“While our two main sources of revenue – production and advertising – were down significantly in the first half of the year and the outlook remains uncertain, today we are seeing an upward trajectory with productions restarting and advertisers returning to take advantage of our highly effective mass reach and addressable advertising platform, in a brand safe environment.

“We have made good progress in our digital transformation. The majority of our colleagues are working seamlessly at home thanks to the investment we have made in technology and systems and this has helped us continue to deliver on our strategic objectives. The success of the Hub investment plan contributed to driving online viewing up 13% and monthly active users up 15% in H1. We continue to successfully roll out Planet V with around 35% of our VOD inventory now delivered through this platform, which is on track to be live with most of the major agencies by the end of the year. BritBox is ahead of target on subscribers in the UK and we have announced plans to roll out BritBox internationally.

“The future is still uncertain due to the pandemic but the action we have taken to manage and mitigate the impact of COVID-19 puts us in a good position to continue to invest in our strategy of transforming ITV into a digitally led media and entertainment company“.

The price of shares in ITV climbed by 3.74% to 63.18p (as of 14:35 BST)