5th Nov 2008 07:00
ITV plc INTERIM MANAGEMENT STATEMENT
ITV maintains its share of UK television advertising revenues
for the first time in over 25 years
5th November 2008
Group highlights for nine months to 30 September 2008
Group revenues £1,471m (2007: £1,484m).
ITV Family outperforms market with net advertising revenue ("NAR") down 2.5% at £1,041m, ahead of total TV market down 3.2%.
ITV Family delivering 5% more impacts, with ITV digital channel impacts up 27% and ITV1 impacts held year on year.
ITV Family share of commercial impacts ("SOCI") held at 40.9% (2007: 41.3%), with ITV1 SOCI down 5.7%.
Continuing strong growth in Global Content with external revenues up 35% at £206m.
82 million video views delivered across ITV sites with itv.com unique users reaching 8 million in October.
|
Revenues for 9 months to 30 September 2008 (£m) |
2008 |
2007 |
% |
|
Broadcasting |
1,202 |
1,259 |
-5 |
|
Global Content (external revenues) |
206 |
153 |
+35 |
|
Online |
25 |
24 |
+6 |
|
Other |
38 |
48 |
-21 |
|
Total revenues |
1,471 |
1,484 |
-1 |
Financial position
As announced in July 2008, ITV has strengthened its liquidity position with the issue of a £110m bond repayable in March 2013 and £200m of five year bi-lateral financing secured, none of which includes financial covenants.
The 2008 interest charge will include £16m of final closure costs of a financial instrument integral to a £125m finance facility and its associated interest rate. The facility remains in place until May 2013.
The 2009 interest charge will include £8m costs from coupon step-ups following downgrades of ITV debt since the interim results. ITV's debt is currently rated Ba1 by Moody's and BB+ by Standard & Poor's and Fitch.
In August 2008 ITV agreed with the Pension Trustees that it will contribute £30m a year to the pension scheme as deficit funding for 5 years from 2009.
There has been no other material change in ITV's financial position since the interim results.
Outlook
Michael Grade, Executive Chairman of ITV, said:
"In tough economic conditions, operationally we continue to perform strongly and we expect to hold our share of UK television advertising year on year for the first time in over 25 years.
With our sustained investment in programming, this year we are delivering more viewers and impacts to our advertisers than we did in 2007. The top 500 programme episodes on UK commercial television over the first nine months of this year were all on ITV.
Global Content continues to grow rapidly its business beyond ITV. External revenues are up by 35%, driven by production for international and increased commissions from the BBC, Channel 4 and five.
Online video viewing has increased spectacularly in 2008. With over 80 million views on ITV sites, we've demonstrated our ability to meet that growing demand. Now is the time to integrate our online video sites editorially with our broadcast business as mass-market channels in their own right and drive the advertising opportunity from that proven consumer demand.
We remain focused on delivering our Turnaround Strategy, whilst driving efficiency savings across the business, supported by our strong financial liquidity. We continue to seek accelerated action to relieve our regulatory burden."
NOTES TO EDITORS
1.
|
Key performance indicators for 9 months to 30 September 2008 |
|||
|
2008 |
2007 |
% |
|
|
ITV1 adult impacts (bln) |
172.8 |
173.0 |
- |
|
ITV family adult SOCI (%) |
40.9 |
41.3 |
-1 |
|
Content revenues, including internal, (£m) |
405 |
396 |
+2 |
|
itv.com unique users - av. monthly (mln) |
5.9 |
4.8 |
+23 |
|
Total online video views (mln) |
82 |
14 |
+472 |
2. ITV's business segments - Broadcasting, Global Content and Online - remain unchanged for
financial reporting purposes.
3. Unless otherwise stated, revenues, share of viewing and commercial impact data are for the
nine month period to 30 September 2008, compared to equivalent period in 2007. Forecasts
for Q4 and the calendar year for ITV and the total UK advertising market are based on current
ITV estimates.
4. Figures for commercial impacts and viewing are based on BARB / Infosys data for adult
impacts and individuals viewing. ITV family includes: ITV1, ITV2, ITV3, ITV4, CITV, GMTV1,
GMTV2, Men&Motors and associated "+1" channels. ITV digital channels include: ITV2, ITV3,
ITV4, CITV, GMTV2, Men&Motors and associated "+1" channels.
5. Average monthly unique users compare average for the first nine months of 2008 and the
equivalent period in 2007. Total video views include total video views across all ITV sites for the
first nine months of 2008 and 2007. Video views are based on internal Company data for
itv.com and itvlocal. Unique users are based on Omniture data. Video views on itv.com began
in August 2007.
6. Figures presented in this interim management statement are not audited. This
anouncement contains certain statements that are or may be forward-looking with respect to
the financial condition, results or operations and business of ITV. By their nature forward-
looking statements involve risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from those expressed or implied by such
forward-looking statements. These factors include, but are not limited to (i) adverse changes
to the current outlook for the UK television advertising market, (ii) adverse changes in tax laws
and regulations, (iii) the risks associated with the introduction of new products and services,
(iv) pricing, product and programme initiatives of competitors, including increased competition
for programmes, (v) changes in technology or consumer demand, (vi) the termination or delay
of key contracts, (vii) fluctuations in exchange rates and (viii) volatility in financial markets.
For further enquiries please contact:
ITV plc
Press queries Tel: 0207 156 6000
Mark Gallagher - Director of Group Corporate Affairs
Ruth Settle - Director of Corporate Communications
Louise Evans - Head of Press, Financial and Commercial
Investor queries
Christy Swords - Director of Investor Relations Tel: 0207 156 7022
Pippa Strong - Head of Investor Relations Tel: 0207 156 7039
Tulchan Communications Group Tel: 0207 353 4200
Andrew Grant
Susanna Voyle
Lizzie Morgan
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