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ITV ads slide as Studios sees boost

Hit reality show Love Island airs on ITV2

ITV has seen its advertising revenues fall by 8% as Brexit concerns hit the UK commercial broadcaster, but production income has risen.

ITV warned last year that the UK’s decision to leave the EU would hit the firm’s advertising results, and in its half-year results the broadcaster posted ad revenue of £769m (US$1bn), down from £838m on this time last year.

Executive chairman Peter Bazalgette said the broadcast business “remains robust” despite the decline, which he said was caused by “ongoing economic and political uncertainty.”

He also highlighted the success of Love Island, ITV2’s hit reality dating show that concluded its third season this week, adding that it “demonstrates that young viewers engage in great TV content.”

Ad revenues are predicted to improve in the third quarter, ITV added, with a drop in revenue of only 4% expected.

Meanwhile, revenues from ITV Studios jumped from £651m to £697m, a rise of 7%, with Bazalgette saying the division had a “very strong pipeline of new and returning drama and formats” and was “building momentum” in the US scripted sector.

ITV said online, pay and interactive revenues were up 5% to £112m, with online viewing up 34%. Bazalgette describe the overall results as “very much as we anticipated.” Shares were up by around 3% in morning trading.

The broadcaster named Carolyn McCall, the boss of budget airline EasyJet, as its new CEO earlier this month, replacing outgoing chief Adam Crozier. She will take up the role on January 8 next year.

ITV has continued its acquisition activity despite Brexit concerns, recently picking up Line of Duty producer World Productions in the UK, Tetra Media Studio in France and Elk Production in Sweden.

The company, which was hit by an ad slump in November, is also cutting 120 jobs following the Brexit referendum.

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