14th May 2015 11:09
LONDON (Alliance News) - ITV PLC is one of the biggest fallers on the FTSE 100 Thursday, despite reiterating expectations for further strong growth across its business for 2015 and posting a rise in revenue for its first quarter, as a weaker second quarter outlook for net advertising, lower share of viewing, and a staff strike overshadowed its strong start to the year.
Shares in ITV are trading down 1.9% at 255.20 pence Thursday morning.
Production workers and other staff are conducting a 24 hour strike Thursday in a dispute over pay, after the company offered staff members a 2% pay rise.
ITV said Thursday that ITV Family net advertising revenue rose 12% in the first quarter to end-March, ahead of the 11% that company had previously guided at the time of its full-year results.
ITV Family net advertising revenue was up 5% in April, but is forecast to be down 5% in May and down by between 5% and 7% in June, as in the previous year results were boosted by the World Cup. As a result, ITV is guiding for 5% overall growth for its first half.
ITV Family's share of viewing fell three percentage points in the first four months to 20.9%, ITV said, and improving this remains a key focus for the full year. It highlighted a robust performance from 'Britain's Got Talent', and 'Ninja Warrior' amongst other programmes, and said its digital channels saw improving audience share, up three percentage points in the period compared to the previous year.
ITV is focused on its main channel, and expects to see an improvement in the second half of the year, boosted by its exclusive broadcast rights to the Rugby World Cup.
Total external revenue rose 14% to GBP665 million in the first quarter, up from GBP585 million a year before. Broadcast and Online revenue rose to GBP530 million from GBP480 million, boosted by strong growth in net advertising revenue and further growth in its Online, Pay & Interactive business.
The company said its ITV Studios business remains on track to increase revenue by around GBP100 million at constant currency in 2015, and will also benefit from its recent acquisition of Dutch media tycoon John De Mol Jr's production company Talpa Media BV.
"For 2015 as a whole we anticipate further strong growth across ITV as we continue to rebalance and strengthen the business creatively, commercially and financially," said Chief Executive Officer Adam Crozier in the company's statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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