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ITV ad revenue down 14% for Q3 but total revenue rises in 2022 so far

UK commercial broadcaster ITV reported a decline in total advertising revenue in the third quarter of 2022, although total revenue rose in the first nine months of the year.

Carolyn McCall

Total ad revenue decreased 14% year-on-year in Q3, which ITV said was due to tough comparatives. August experienced the biggest drop of 21%, followed by 14% in September and 9% in July.

In the nine months to the end of September, total ad revenue slipped 2% to £1.33bn (US$1.51bn) on the first nine months of 2021.

For 2022 as a whole, total ad revenue is forecast to be down by 1-1.5% year-on-year, with October expected to see a 9% fall and November and December predicted to be up by 3% and 5-10% respectively while ITV airs the FIFA World Cup.

Total non-advertising revenue, meanwhile, grew by 13% year-on-year to £1.62bn in the first nine months of 2022, while total revenue rose by 6% to £2.52bn. This was driven by 16% growth at ITV Studios to £1.39bn offsetting a 2% decline in media and entertainment revenue to £1.56bn.

Within media and entertainment, total digital revenue increased by 15% to £276m year-on-year in the first nine months of 2022, while total streaming hours rose by one million to 813 million. Monetisable streaming hours on ITV Hub, ITV Hub+ and BritBox UK grew by 10% in the period.

ITV’s share of commercial viewing dipped by 0.2 percentage points to 33.2% in the nine months to the end of September.

The broadcaster expects total revenue for the full year to exceed the pre-Covid year of 2019, with ITV Studios predicted to deliver revenue growth in excess of its 5% medium-term target in 2023.

ITV Studios’ adjusted EBITA margin guidance remains at 13-15% from 2023, although ITV reaffirmed its expectation for the margin to be at the lower end of the range in the short term due to current inflation in the production market.

ITV is preparing to launch its new streaming platform ITVX on December 8. The broadcaster’s CEO Carolyn McCall said: “ITVX will supercharge our streaming business providing viewers with a content-rich destination rather than a catch-up service and advertisers with valuable addressable audiences at scale.

“This will drive significant digital viewing and revenue growth, enabling ITV to deliver at least £750m digital revenues by 2026.

“While we remain mindful of the macroeconomic and geopolitical uncertainty there’s strong operational momentum across both our Studios and Media & Entertainment divisions as we continue to build a resilient, diversified business that can take advantage of the global growth in the demand for quality content and the desire of advertisers for both mass reach and data-led addressable advertising, targeting millions of UK viewers.”

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