4th Mar 2015 07:28
LONDON (Alliance News) - ITV PLC Wednesday proposed a GBP250 million special dividend at 6.25 pence per share, and raised its total ordinary dividend, as it posted a rise in pretax profit for 2014.
The company proposed a final dividend of 3.3 pence, taking its total dividend for the year up to 4.7 pence from 3.5 pence. The company has committed to grow its full-year ordinary dividends by at least 20% per year over the three years to 2016.
ITV posted a pretax profit of GBP605 million, up from GBP435 million, as revenue rose to GBP2.96 billion from GBP2.75 billion. Stripping out exceptional costs including acquisition, impairment, amortisation, net financing costs, restructuring and other tax adjustments, ITV posted a pretax profit of GBP712 million, up from GBP581 million, and earnings per share of 13.8 pence, up from 11.2 pence.
A consensus forecast of seven analysts provided by Morningstar showed analysts expected ITV to post an adjusted pretax profit of GBP669.40 million, and earnings per share of 13.06 pence.
Revenue growth was driven by a strong performance from broadcast and online, as the advertising market continued to improve in 2014 and it saw 6% growth in net advertising revenue. Online, Pay and Interactive revenue rose 30%. ITV studios revenue rose 9%, bolstered by acquisitions.
ITV Family's share of viewing was down to 22.0% from 23.1% in 2014, despite a boost from the World Cup in June, as the main channel saw lower audience share due to strong competition from the BBC, and ITV2 saw more competition from UK digital channels.
ITV said it expects to deliver "another strong performance in 2015 with continued revenue growth across all parts of the business."
It expects its ITV Family net advertising revenues to be up 11% in the first quarter of 2015, and up 4% to 7% in April. ITV said it remains focused on improving its share of viewing in 2015, and will increase investment in its programme schedule in 2015.
ITV said expects its Online, Pay and Interactive revenue to grow in 2015, and will continue to invest in its ITV Player video-on-demand service.
The broadcaster expects its ITV Studios business to deliver around GBP100 million in revenue growth in 2015 on a constant currency basis, bolstered by acquisitions it completed in 2014.
"ITV is now a high growth business with increasing emphasis on international content creation and distribution, and is demonstrably much stronger, both creatively and financially, than when we set out on our five year plan. We remain firmly focused on our strategy and look forward to this year and beyond with enthusiasm and confidence," Chief Executive Officer Adam Crozier said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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