UK broadcaster ITV is back in profit thanks to improved performances at its production and online businesses, and has confirmed plans for a new drama about the founder of London store Selfridges.
In its 2011 results published today, ITV reported pre-tax profit of £327m (US$521.4m), up 14% from £286m the year before. Total revenue rose to £2.14bn from £2.07bn year-on-year.
The results helped secure an overall profit of £45m for the year ending December 31, clearing a debt of £118m from 12 months ago.
The turnaround was fuelled by the broadcaster’s production arm ITV Studios (ITVS), which saw a 28% rise in commissions to 111, of which 45 were from international broadcasters. This includes Julian Fellowes’ Titanic, which has been presold to 86 countries.
Revenue at ITVS increased by 10% in 2011 to £612m (£554m in 2010), helped further by 101 recommissions. The share of its work commissioned by flagship channel ITV rose from 53% to 55%.
In a statement, ITV CEO Adam Crozier reiterated the company’s desire to acquire new production businesses but said its short-term plan was to continue to grow ITVS organically.
ITV’s profit was also aided by a £93m year-on-year increase in non-advertising revenue, which Crozier attributed to the growth in production and online units.
Its online business saw a revenue increase of 21% to £34m (£28m in 2010) through improved quality and distribution of the ITV Player, which recorded 376 million views in 2011, compared with 261 million the previous year.
The broadcaster has also recently signed content deals with Netflix, LoveFilm and Sky. ITV said today it would was also on course to add micropayments to its online video player later this year but didn’t elaborate.
Under the leadership of Crozier, ITV is now two years into a five-year transformation plan. However, he also warned that while TV advertising revenue was up 1% at £1.5bn in 2011, a drop of 2% was expected in the first quarter of 2012.
He said: “Our vision remains to create world-class content that we can make famous on our channels, before exploiting its value across multiple platforms, free and pay, in the UK and internationally. Content creation therefore lies at the heart of our transformation plan and we are encouraged by the momentum that is building.”
Looking ahead, The X Factor and I’m A Celebrity… Get Me Out of Here broadcaster will have a programming budget circa £1bn for 2012 as it seeks to continue investment in content. Four of the top five new UK dramas aired on ITV1 last year, while the broadcaster also negotiated new deals for sports rights including English and European football.
ITV will also explore the “development of potential pay channels” and install an ITV app on connected TVs, while increasing focus on international coproductions and commissions outside ITV1 in the coming year.
Meanwhile, ITVS will produce a major new drama about Harry Gordon Selfridge, the flamboyant entrepreneur who founded the London department store, for ITV1.
Set in 1909, Mr Selfridge (working title, 10×60’) tells the story of the opening of the Oxford Street retailer, contrasting with Selfridge’s personal life of womanising and gambling.
The series is written by Andrew Davies (Bleak House), with Kate Brooke (Case Sensitive) and Kate O’Riordan (The Bad Mother’s Handbook), and is inspired by Lindy Woodhead’s biography of Selfridge. Production will begin in April for transmission in 2013.
ITV Studios Global Entertainment (ITVSGE) will present the series to international buyers at MipTV in Cannes next month.
Maria Kyriacou, MD of ITVSGE, said: “Mr Selfridge is a big, ambitious drama with clear international appeal. We’re confident it will be a target for broadcasters looking to invest early in elaborate, high-volume scripted content.”
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