7th Nov 2024 10:51
(Alliance News) - ITV PLC said Thursday that revenue in the third-quarter declined, hurt by a hangover from Hollywood strikes last year, while advertising bookings for the final quarter of 2024 were hurt by pre-UK budget uncertainty.
ITV shares fell 7.7% to 66.75 pence each in London on Thursday morning.
The London-based television broadcaster and content producer said revenue in the nine months to September 30 fell 7.9% to GBP2.74 billion from GBP2.98 billion a year prior. It said "growth in total advertising revenue offset by the decline in ITV Studios revenue".
Revenue at content production arm ITV Studios was hurt by "the phasing of deliveries and the 2023 US writers' and actors' strike" in the third-quarter. Year-to-date revenue at the unit is down 20%.
Nonetheless, the firm still expects "record" adjusted earnings before interest, tax and amortisation from the unit in 2024. This is due to "efficiency gains and a significant Q4 delivery schedule".
"Total Studios revenue is expected to decline mid-single digits over the full year which is only marginally down year on year excluding the impact of the US actors' and writers' strikes," ITV said.
ITV Studios achieved revenue of GBP2.17 billion in 2023, and an adjusted Ebita of GBP286 million.
ITV Chief Executive Carolyn McCall said: "ITV Studios is performing well despite the expected impact of both the writer's strike and a softer market from free-to-air broadcasters. ITV Studios has had an excellent start to Q4, in line with expectations, which will ensure it achieves record profits in 2024. Studios has great creative and commercial momentum as demonstrated in the last few weeks with shows including Rivals for Disney+ and Ludwig for the BBC and is on track to deliver good revenue growth in 2025 and 2026."
The Media & Entertainment, the commercial broadcasting and streaming arm, achieved revenue growth of 4.5% to GBP1.52 billion from GBP1.46 billion in the first nine months of 2024. Total advertising revenue alone climbed 6%.
"ITVX's good performance has continued in Q3 with a range of programmes such as the Euros, Love Island, The Tower and Douglas Is Cancelled driving total streaming hours up 14% year-on-year over the nine months to 30 September. Monthly active users continue to grow in line with our expectations," ITV said.
Over the full-year, it still expects total advertising revenue growth of around 2.5%, but the fourth-quarter down 6%-7%, due to a tough comparative as the prior year had a boost from the Rugby Union World Cup. In addition, it said "advertising bookings were impacted by the uncertainty in the lead up to the UK budget".
The CEO added: "Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced GBP40 million of incremental cost savings through restructuring, improved efficiency and simplifying ways of working. Coupled with our strategic delivery and revenue outlook, this continues to give us the confidence that we will deliver an increase in group profit this year."
By Eric Cunha, Alliance News news editor
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