2nd Mar 2023 10:35
(Alliance News) - ITV PLC on Thursday said its profit, revenue and total dividend all increased across 2022, while it expects 2023 first quarter revenue to be up 25% from a year earlier.
The London-based television broadcaster and content producer said 2022 pretax profit was up 4.4% to GBP501 million from GBP480 million in 2021. On an adjusted basis, pretax profit fell 13% to GBP672 million.
Revenue climbed 7% to GBP4.35 billion from GBP4.04 billion, including a 19% rise in ITV Studios revenue to GBP2.10 billion from GBP1.76 billion, although Media & Entertainment revenue fell 1% to GBP2.25 billion from GBP2.28 billion.
As a result, it increased its total dividend for the year by 51% to 5.0 pence from 3.3p in 2021.
Shares in ITV were down 2.8% to 85.98p each in London on Thursday morning.
ITV said rising ITV Studios revenue was ahead of the market and was alongside a 58% increase in high-end scripted hours produced. It claimed to have taken advantage of the global demand for scripted content.
Nineteen formats were also sold in three or more countries, up from 15 in 2021, as programmes such as 'My Mom, Your Dad' and 'Make Love Fake Love' were among those picked up abroad.
In Media & Entertainment, ITV said its key performance indicators demonstrated "strong strategic progress with a significant increase in the volume of content available for streaming from 4,000 in 2021 to 19,000 hours; improved user experience; successful launch of ITVX; and further roll out and development of Planet V, ITV's self-service programmatic advertising platform".
It noted Planet V as being the second largest video advertising technology platform in the UK after Google, underpinning its "ability to drive digital targeted advertising revenues whilst retaining control of our own sales and avoiding value leakage to adtech intermediaries".
BritBox International subscribers also increased 25% from 3.0 million in 2021.
"2022 was a year of significant strategic progress and ITV delivered a robust set of financial results. The successful execution and delivery of ITVX in Q4 was a major digital milestone. The platform has received a very positive reception from viewers and advertisers alike, with its newly expanded range of original content [...] The user experience and personalisation elements will continue to improve throughout 2023," said Chief Executive Officer Carolyn McCall.
"As a result of ITV's deliberate strategic actions and strong execution, ITV has a scaled and expanding global production business, a rapidly growing targeted digital advertising business, a resilient linear TV advertising business and a unique vertically integrated producer broadcaster and streamer model. This means that ITV is now a demonstrably more balanced business which is ideally placed to take advantage of the growing demand for quality content from viewers, broadcasters and streamers and take a larger share of the digital advertising market."
Looking ahead, ITV expects strong growth in digital advertising in the first quarter of 2023, with revenue to increase 25% from the first quarter of 2022.
Carolyn continued: "We enter 2023 with strong momentum and are on track to deliver all our 2026 KPI targets despite a continuing uncertain macro environment. ITV's balance sheet is robust enabling us to continue to invest to support our strategy and deliver returns to shareholders."
Among ITV's 2026 KPI targets is aiming to deliver at least 5% average revenue growth per year until 2026 and to grow ahead of the market.
It also said it remains committed to its ITV Studios adjusted earnings before interest, tax, depreciation and amortisation margin guidance of 13% to 15% from 2023 onwards.
"Given the current inflation in the production market and general cost inflation, we expect the margin to be at the lower end of the range in the shorter term, as we previously guided. We continue to drive efficiencies through the digital innovation programme," ITV said.
On Wednesday, ITV said it is adding architectural technology company Resi Design Ltd to its "Media for Equity" portfolio as its first investment of 2023.
This is after agreeing to subscribe for GBP1 million convertible loan notes in Resi.
The deal has an option for an additional two tranches of GBP1 million each, in return for advertising inventory across ITV's Channels and ITVX.
By Greg Rosenvinge, Alliance News reporter
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