ITV studios has reported a decline in revenue due to the ongoing impact of the US writers' strike, which has led to a decrease in profits. Despite cost savings and an increase in advertising revenue, these were not enough to counterbalance the fall.
The company's share price experienced a nearly eight per cent drop in early trading, as reported by .
Group revenue for the first nine months of the year decreased by eight per cent, falling to £2.7bn from £2.9bn in 2023.
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Revenue at ITV Studios, known for producing Ludwig for the BBC and Rivals for Disney+, saw a 20 per cent decrease in the year to date, amounting to £1.2bn.
ITV attributed this drop to the scheduling of deliveries with more shows planned for the fourth quarter than the third and the 2023 US writers' and actors' strike.
The broadcaster anticipates that revenue will continue to decline in the mid-single digits over the full year.
However, ITV stated that despite these challenges, ITV Studios is still "on track" to deliver record adjusted earnings before interest, tax and amortisation in the full year, thanks to efficiency gains and a "significant" fourth-quarter delivery schedule.
Productions set for the fourth quarter include Shetland for the BBC, Grace S5 for ITV, and The Forsytes for PBS Masterpiece.
ITV’s advertising revenue set to grow
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In terms of advertising revenue, ITV reported that it remained flat in the third quarter, although they expect full-year revenue to increase by 2.5 per cent. The broadcaster noted that fourth-quarter advertising bookings were affected by uncertainty leading up to the 海角视频 budget.
ITV has set its sights on achieving £20m in net cost savings next year, with plans to cut content costs by £10m and implement non-content savings of another £10m ahead of schedule in 2024, rather than in 2025. These strategic measures are expected to contribute to an uplift in the group's profits for the current year.
Chief Executive Carolyn McCall shared an optimistic perspective, remarking, "ITV's good strategic progress has continued in the first nine months of 2024 driven by strong execution and industry leading creativity."
Despite adverse factors, McCall highlighted ITV Studios' robust performance stating, "ITV Studios is performing well despite the expected impact of both the writer's strike and a softer market from free-to-air broadcasters. ITV Studios has had an excellent start to the fourth quarter, in line with expectations, which will ensure it achieves record profits in 2024."
She further noted the success of ITVX, pointing out, "ITVX continued its strong performance, delivering double-digit growth in streaming hours and digital revenues. ITV maintained its unique position in linear television through the quality and breadth of its schedule, and ITV1 was voted Channel of the Year at the Edinburgh TV Awards."
McCall also addressed the company's financial efficiency improvements, stating, "Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced £40m of incremental cost savings through restructuring, improved efficiency and simplifying ways of working."