5th Mar 2020 09:11
(Alliance News) - ITV PLC on Thursday said its annual results were ahead of expectations driven by revenue growth in the second half of the year.
The stock was trading 8.6% lower at 106.21 pence each on Thursday morning in London.
For 2019, pretax profit fell 6.5% to GBP530 million from GBP567 million in 2018 as operating costs increased 6.1% to GBP2.77 billion from GBP2.61 billion.
The broadcaster reported a 3.2% rise in total group revenue to GBP3.89 billion from GBP3.77 billion in 2018.
Broadcast total revenue was down 1.9% year on year to GBP2.06 billion as total advertising revenue slipped by 1.7% to GBP1.77 billion but was guided to fall 2%.
ITV Studios total revenue was 9.0% higher at GBP1.82 billion. The company's total non-advertising revenue - which includes ITV Studios and any non-advertising revenue from its Broadcast unit - rose 7.6% to GBP2.12 billion.
ITV Studios saw growth in all areas, but the company noted particular strength in ITV Studios US and ITV Studios International.
Group external revenue was up 3.1% to GBP3.31 billion from GBP3.21 billion.
Chief Executive Carolyn McCall said: "ITV delivered a good performance in 2019 in spite of the uncertain economic and political environment. Full year results were ahead of expectations and we made good progress in executing our strategy to build a digitally led media and entertainment company."
She continued: "We are growing our stable margin Studios business, transforming Broadcast and expanding our Direct to Consumer business. The investments in our strategic priorities are delivering. We are strengthening our creative talent in ITV Studios; accelerating the growth of ITV Hub; rolling out Planet V, our addressable advertising platform; strengthening our data and tech capabilities; and we successfully launched BritBox UK."
The FTSE 100-listed firm proposed a final dividend of 5.4 pence a share, taking the total payout to 8p, unchanged from 2018.
Looking ahead, ITV expects advertising revenue to be up 2% in the first quarter of 2020, though early indications suggest it will be down 10% in April. The broadcaster noted that it has seen travel advertising deferments relating to the coronavirus outbreak.
"Despite the ongoing economic uncertainty around the outlook for the UK following its departure from the European Union, we currently remain on track to deliver our medium term targets. At this stage, it is too difficult to assess the further implications of the coronavirus but we continue to monitor the situation closely," said Chief Executive Carolyn McCall.
She added: "We are very focused on building a stronger, more diversified and structurally sound business. The media market is changing rapidly and our strategy continues to evolve to position ITV to take advantage of the opportunities in advertising video on demand and streaming, while mitigating the effect of competition for viewing."
By Ife Taiwo; [email protected]
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