ITV First-Quarter Ad Revenue Rises, Studios Unit Posts 16 Percent Drop on Hollywood Strikes Impact
ITV First-Quarter Ad Revenue Rises, Studios Unit Posts 16 Percent Drop on Hollywood Strikes Impact
U.K. TV giant ITV on Thursday reported a 3 percent advertising revenue gain for the first quarter of 2024, with the current second quarter forecast to record stronger growth. But its ITV Studios unit posted a big drop “due to the phasing of deliveries which are heavily weighted to the second half and the expected impact from both the 2023 U.S. writers and actors strikes and the weaker demand from free-to-air broadcasters in Europe” which, the company said, “have been holding back spend until they see more certainty in the advertising market.”
ITV’s quarterly ad gain was in line with management’s forecasts. Compared to the same period in 2023, ITV had previously forecast its first-quarter 2024 ad revenue would be up 3 percent, “with continued strong growth in digital advertising revenues.” On Thursday, the company highlighted “strong momentum into the second quarter, expected to be up around 12 percent.”
The company, led by CEO Carolyn McCall, reported a 7 percent drop in total first-quarter revenue for the January-March period to £887 million ($1.11 billion) and detailed results for its key business units. Quarterly revenue at its production arm ITV Studios dropped sharply in the period to £382 million ($477 million), while revenue in ITV’s core media and entertainment unit was up 2 percent to £505 million ($630 million).
“Total ITV Studios first-quarter revenue was down 16 percent, reflecting the phasing of deliveries and the expected impact of the U.S. writers’ and actors’ strike,” the company said.
Said McCall: “ITV continues to execute its strategy successfully. Over the full year, we expect ITV Studios revenues to be broadly flat. We have a strong pipeline of programs, good demand for our quality content as we increasingly diversify our customer base towards streamers, and the phasing of deliveries is heavily weighted to the second half of the year, including Hells Kitchen U.S., The Better Sister, A.C.A.B, Showtrial and Ludwig.”
She added: “ITVX continued to build on its strong first year and delivered double-digit growth in both digital viewing and digital advertising revenues in the first quarter, and we expect continued strong growth in both throughout the year.”
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