ITV’s Ad Revenue Up 10%; Studios Arm Falls Amid Hollywood Strikes

U.K. TV giant ITV reported its first-half 2024 revenue on Thursday, showcasing a slight decline in total revenue but a 10 percent boost in advertising revenue. The latter saw a notable 17 percent surge in the second quarter, fueled by the UEFA Euro 2024 soccer tournament held in June and July.

ITV’s previous forecast anticipated a 12 percent rise in advertising revenue for the second quarter and an 8 percent increase for the first half of the year. However, ITV Studios experienced a 13 percent revenue drop in the first six months of 2024 due to the scheduling of deliveries and the anticipated impact of the U.S. writers’ and actors’ strike.

Under the leadership of CEO Carolyn McCall, ITV also highlighted the growth momentum of its streaming service ITVX. This platform, primarily supported by advertising but also offering an ad-free subscription tier, has shown promising progress.

In the first half of 2024, ITV’s total external revenue witnessed a 2 percent decline, with overall revenue decreasing by 3 percent to £1.90 billion ($2.45 billion). However, earnings before interest, taxes, and amortization (EBITA)—a key profitability metric—soared by 40 percent to £213 million ($275 million). This increase was attributed to the operational gearing of Media & Entertainment, the higher margin in ITV Studios, and the achievement of £23 million in cost savings.

Looking ahead, ITV projects that total advertising revenue will remain broadly flat in the third quarter compared to the same period in 2023, which included the Rugby World Cup. However, there is an expectation of continued robust growth in digital advertising revenues.

“ITV has been transformed over the last five years and we continue to build upon this,” stated CEO Carolyn McCall. “We are confident of delivering increased adjusted EBITA this year, following the year of peak net investment in 2023, and are on track to deliver our 2026 key performance indicators targets.”

McCall also noted that ITV Studios is performing well despite the challenging market conditions and is forecasted to achieve a record adjusted EBITA for the full year. This success is credited to its scale, diversification by product, geography, and customer, remarkable creative output, and the actions taken to enhance efficiencies.