12th May 2016 09:05
LONDON (Alliance News) - ITV PLC on Thursday said it has made a good start to 2016, with revenue up 14% in its first quarter, but struck a more cautious tone in its guidance for advertising revenues for its first half against what it called a "backdrop of uncertainty".
In a statement ahead of the FTSE 100 listed broadcaster's annual general meeting, ITV said total revenue rose 14% to GBP755 million in the three months to the end of March from GBP665 million a year before. This included flat net advertising revenue, 44% growth in the ITV Studios segment and 17% growth in its online, pay and interactive segment.
ITV's share of viewing was up 3%, including a 1% rise in share of viewing for its core family of channels. ITV cited a "robust" traditional UK television market, and also saw a strong performance online, where viewing consumption grew 22%.
The company said it expects to deliver "good group profit growth" in the first half, against a backdrop of uncertainty in the UK advertising market which it has experienced "since the debate over Brexit began", it said.
ITV also forecast flat net advertising revenue for its core family of channels in the first half, which it said is ahead of the market. However, this forecast was dimmed from the guidance ITV previously gave at its full year results in March for a "positive" second quarter, helped by the Euro 2016 football championship in France.
The company said its content business ITV Studios performed strongly in the quarter, seeing acquisitions coming through. It said it has a "healthy pipeline" of new and returning programmes, including 'Victoria', 'Cold Feet', 'The Voice' and 'Alone', which gives it confidence for 2016 and into 2017.
ITV said is on track for double-digit revenue growth in online, pay and interactive, and double-digit revenue and profit growth in ITV studios business over the full year.
"We've had a good start to 2016 as our strategy of growing and rebalancing the business continues to deliver," said Chief Executive Adam Crozier in a statement.
"The strength of our cash generation and financial position gives us the flexibility to continue to deliver further growth across the business both organically and through acquisitions and partnerships," Crozier added.
Thursday's annual general meeting marks the last for ITV's outgoing chairman, Archie Norman. Norman will be replaced by Peter Bazalgette, who has been a non-executive director of the company since 2013. Bazalgette is the former chairman of television producer Endemol UK and is credited with the creation of a number of formats, including reality show Big Brother.
Elsewhere, ITV came under fire from the official campaign for Britain to exit the EU, Vote Leave, over its decision to put UK Independence Party leader Nigel Farage up against UK Prime Minister David Cameron in a television special on the EU referendum.
Vote Leave said it was discussing legal possibilities, as it accused ITV of allowing the Prime Minister to "dictate his own opponent".
Shares in ITV were down 1.6% at 211.80 pence Thursday morning, having risen to 220.90p earlier in the session.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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