- Group revenue down 7%
- Studios revenue down 16%
- Shares up 20% this year
Shares in ITV (ITV) gained nearly 2% in morning trading despite the free-to-air broadcaster reporting a 7% fall in total revenue to £887 million for the three months to 31 March 2024.
A ‘sore point’ for the free-to-air broadcaster came from ITV Studios which reported a 16% fall in total revenue to £382 million in the first quarter, hit by the strike by Hollywood writers and actors and weaker demand from free-to-air broadcasters in Europe who have been holding back spend ‘until they see more certainty in the advertising market’, the firm said.
The company now expects total revenues for ITV Studios to be broadly flat over the full year 2024.
STRONG PERFORMANCE
Investors were treated to some good news though from ITVX, ITV’s on-demand streaming service, with total streaming hours up 16% and 14% growth in digital advertising revenues in the first quarter.
The company said ITVX's monthly active users ‘continue to grow in line with expectations’.
Media & Entertainment revenue was up 2% to £505 million compared to £495 million in the same year ago period with TAR (total advertising revenue) up 3% as previously guided.
ITV said it remained on track to deliver at least £750 million of digital revenues by 2026.
EXPERT VIEW
Russ Mould, investment director at AJ Bell, said: ‘The company’s digital strategy looks to be delivering. ITVX got a negative reception when it was first announced a little over two years ago, but the platform is attracting users and advertising at an impressive rate helping to make up for declining traditional ads.
The Euros football tournament this summer will provide the usual kicker to advertising spend and ITV is looking to become a more streamlined and focused operation. For example, it is taking out costs and sold its Britbox International joint venture earlier this year.
‘It’s a long road back for ITV to the share price highs achieved in the mid-2010s, after a previous turnaround under Adam Crozier, but there is evidence of genuine progress’, added Mould.
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Ian Conway) own shares in AJ Bell.
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