ITV profit more than doubles in 2024 despite revenue dip caused by US strikes
UK commercial broadcaster ITV’s profit before tax more than doubled year-on-year in 2024, although revenue dipped as a result of the 2023 US actors and writers’ strikes and “softer” demand among other broadcasters for ITV Studios’ content.
Carolyn McCall
ITV’s profit before tax increased to £521m (US$672.43m) in 2024 from £193m in 2023, largely thanks to a £212m profit on disposal of joint ventures and subsidiary undertakings, including the sale of its 50% interest in BritBox International to BBC Studios and its minority shareholding in Blumhouse TV.
The broadcaster also attributed growth in profit to cost savings of £60m in 2024, related to a restructuring programme that led to around 200 redundancies at the company. The £60m saving was £10m over the £50m initially targeted and means ITV has completed its overall £150m savings plan one year early.
ITV plans to deliver a further £30m in non-content savings this year.
CEO Carolyn McCall said: “Our efficiency programme has delivered savings which have funded growth investments, offset inflation and improved our margins. The programme is ongoing and will continue to be viewer-led – driving efficiencies and prioritising our investment to best reflect viewer dynamics and attract both mass-reach audiences on linear and targetable audiences on [streamer] ITVX.”
ITV’s production and distribution business, ITV Studios, achieved record profit in 2024, with adjusted earnings before interest, tax and amortisation (EBITA) up 5% year-on-year to £299m, while its margin grew to 14.7% from 13.2%. The company said this was down to high-margin format and catalogue sales and savings of £25m.
Adjusted EBITA at the media and entertainment (M&E) business was up 22% to £250m, which ITV said reflected a 2% rise in total advertising revenue and savings of £35m.
Total revenue at the company, however, dipped to £4.14bn in 2024 from £4.26bn in 2023, as 1% growth in M&E revenue to £2.10bn failed to offset a 6% decline at ITV Studios to £2.04bn. ITV blamed the decrease in revenue at ITV Studios on the US strikes in 2023 and “softer” demand from free-to-air broadcasters.
Within the M&E business, streaming hours at ITVX were up 12% and monthly active users rose by 14% to 14.3 million in 2024, driven by content including the UEFA European Football Championship (Euros) over the summer, hit format Love Island and drama Until I Kill You.
The number of paid subscribers to the ITVX Premium service, however, fell by 23% to one million, although ITV said it has been prioritising its ad-funded offering over its paid proposition. The broadcaster is targeting 2.5 million subscribers in 2026.
Also within M&E, digital revenue grew by 12%, with in-year incremental digital revenue exceeding incremental ITVX costs two years earlier than expected. ITV said it will have recouped the cumulative incremental investment in ITVX by the end of this year – “much earlier” than anticipated.
In 2025, ITV forecasts total advertising revenue in M&E to be hit by a tough comparative period which included the Euros in 2024, as well as the introduction of tighter advertising restrictions on less healthy foods from October. The first four months of 2025 are expected to be broadly flat year-on-year.
Meanwhile, ITV Studios is expected to deliver “good” revenue growth in 2025, ahead of the market, with revenue and profit weighted to the second half of the year.
ITV said margin this year will be lower than in 2024 but will remain within its target range of 13% to 15%, reflecting a change in sales mix as the market recovers from the US strikes, with a lower proportion of high-margin catalogue sales and a higher proportion of lower-margin scripted deliveries.
Revenue and profit growth momentum at ITV Studios are also anticipated to accelerate in the medium term thanks to the launch of ITV’s Zoo 55 digital studios label in January, a scripted pipeline that includes the second seasons of Rivals for Disney+ and After the Flood for ITV, and large format deliveries including the return of Hell’s Kitchen US and The Voice in multiple countries.
