ITV growth strategy remains on track
ITV has published the following interim management statement in advance of the Company’s Annual General Meeting to be held at 11am today.
- Total external revenues up 2% to £585m (2013: £571m)
- Broadcast & Online revenues up 3% at £480m (2013: £465m) driven by 2% growth in NAR as expected and 14% increase in Online, Pay & Interactive
- ITV Studios set to deliver good revenue growth over the full year, although the phasing of programme delivery in 2014 means Q1 is down 4%
- Completed the acquisition of 80% of Leftfield, the fast growing US independent producer, as we continue to build our international content business
- On track to deliver £10m cost savings over the full year
- ITV Family NAR is forecast to be ahead of the market, up 7% over H1, with initial indications that July will be positive
Adam Crozier, ITV plc Chief Executive, said:
“We continue to make progress with our strategy of growing and rebalancing the business in the UK and internationally.
Broadcast & Online started the year well, helped by another strong performance in Online, Pay & Interactive and by the ongoing improvement in the UK advertising market, with most sectors showing good growth.
While ITV Family share of viewing has been lower than expected so far this year we have confidence in our strong schedule to come, including the Football World Cup in June. ITV Encore – our first pay channel - is on track to launch in June, followed later in the year by ITVBe, our first new Free To Air Channel in almost a decade.
As always, Studios revenues are impacted by phasing of programme deliveries, however given the level of forward visibility we have in our Studios business, we are confident of delivering good revenue growth over the full year driven by the acquisitions we have made.
Just last week we made the significant acquisition of Leftfield Entertainment, a fast growing US production company. The acquisition makes ITV Studios the largest independent unscripted producer in the US and is a major step forward in our strategy of building an international content business. We are also investing in the organic growth of our international scripted business, which will benefit our growth in future years.
Looking ahead, our Q2 advertising revenue is forecast to be up 12-13% and we expect to outperform the TV ad market in H1 and over the full year.”
Download the full results below