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ITV revenues still feeling Covid pinch

UK commercial broadcaster ITV and its production and distribution division ITV Studios (ITVS) continue to see their revenues badly hit by the Covid-19 pandemic, according to third-quarter results released today.

Carolyn McCall

Nearly all of the ITV and ITVS productions that were impacted by the first wave of lockdowns have either been delivered or are back in production, according to the broadcaster’s CEO Carolyn McCall.

But the pandemic continues to affect ITV’s operational and financial performance, with total external revenue down 16% at £1.86m (US$2.45m) and total ITVS revenue down 19% at £902m for the nine months to September 30 this year.

In the same period, ITV’s total viewing was up 2% with an increase in live viewing, although online viewing was down 6% with no summer edition of Love Island and fewer episodes of soaps.

The broadcaster said the delay to productions, further national lockdowns, social distancing and other Covid-19 measures will continue to impact revenue and margin in Q4.

ITV has outlined its extensive Covid-19 management plan for the forthcoming production of reality show I’m a Celebrity… Get Me Out of Here!, which will be filmed at a castle in North Wales instead of its usual tropical location.

Numerous protocols have been put in place to ensure crew can work safely and the area is operating as a closed set during filming, with visitors not permitted.

The measures include proximity buzzers, which will be worn by all site personnel to assist with social distancing.

Meanwhile, all crew will take a twice-weekly rapid Covid test and presenting duo Ant and Dec have formed a close contact cohort, which means they can stand and work together when they need to, as long as they receive Covid tests, which will be conducted every three days.

I’m a Celebrity… Get Me Out of Here! is being produced in Wales

The celebrities in camp have been isolating for the past two weeks and have been tested regularly. They will form a close contact cohort, which will mean they are able to live together as a bubble. They will also be tested every three days.

Elsewhere, ITV is currently in the process of restructuring by forming a new media and entertainment division, to be overseen by MD Kevin Lygo, with the process expected to be complete by the end of March 2021.

Its broadcast business will include all of ITV’s linear channels, while the on-demand unit will include the ITV Hub, ad-free version Hub+ and BritBox, the digital SVoD service created by the BBC and ITV.

Meanwhile, BritBox US now has over 1.5 million subscribers and the international roll-out of the service is “on track,” with an Australian launch imminent and further expansion following soon after, the company said.

Reemah Sakaan, ITV’s group director of SVoD, said in September the JV would be expanding on a “market-by-market basis” but that “huge opportunities” for English-language entertainment existed in India, Africa and the Nordics.

Discussing ITV’s Q3 results, McCall said: “Advertising trends are improving with Q4 forecast to be slightly up year on year and 85% of our productions in the UK and internationally that were paused as a result of Covid-19 are back in production or have been delivered. However, Covid restrictions and further national lockdowns have added production costs and are making it challenging to bring ITVS productions back to full capacity.

“We remain focused on executing our More Than TV strategy as we accelerate our digital transformation. We are restructuring the broadcast business to create a new media and entertainment division to better reflect and serve changing viewing habits. The restructure will also drive improvements in efficiency and reduce costs.

“We have further improved the design and functionality of the Hub, which now has 32 million registered users; and BritBox is on track, with a very successful launch for Spitting Image – BritBox’s first original commission.

“Looking ahead, we will continue to monitor our performance very carefully against a wide range of scenarios given the ongoing uncertainty. We continue to focus on cash and costs and our balance sheet remains robust with good access to liquidity.”

In related news, ITV has commissioned Dancing on Thin Ice with Torvill & Dean, a 90-minute documentary produced by Wingspan Productions.

Narrated by Stephen Fry, it will follow Olympic champion skaters Jayne Torvill and Christopher Dean as they travel to Alaska on a quest to fulfil a life-long dream that also provides a first-hand insight into the effects of climate change.

ITV and its Scottish licence holder STV have also ordered Catchphrase: Catchiest Moments (3×60′) from STV Studios, which will see host Stephen Mulhern look back at some of the show’s highlights since it was revived by STV Studios in 2013.

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