ITV Plc (LON:ITV) today announced Q3 trading statement.
Carolyn McCall, ITV Chief Executive, said:
“ITV’s performance in the first nine months of the year was very much as we expected. We delivered 6% growth in external revenues with total advertising up 2%, driven by 43% growth in online revenues, and 10% growth in total ITV Studios revenues.
“Our strong on screen and online viewing performance has continued with ITV total viewing, which measures our viewing across the ITV Family and the ITV Hub, up 5% driven by a 4% increase in total minutes viewed across the ITV Family and a 37% increase in the time spent viewing online on the ITV Hub. This supports our confidence in the robustness of the ITV integrated producer broadcaster model and also reflects the strength and breadth of our content. We have an exciting schedule for the remainder of the year and into next year with entertainment shows I’m A Celebrity and Dancing On Ice, and dramas including Cheat, Cleaning Up, Manhunt and The Widow as well as the Rugby World Cup exclusively on ITV.
“ITV Studios has delivered a strong performance in the first nine months with organic revenue up 7%. Over the full year we expect to deliver good growth in total ITV Studios revenues and profit in line with our expectations. Organic revenue growth is expected to be around 3% over the full year as a result of no Hells Kitchen deliveries in 2018 compared to two in 2017 and Snowpiercer now being delivered in 2019 rather than Q4 2018 as originally anticipated. We continue to have a strong pipeline of programmes which will be delivered in 2019 and beyond, with entertainment shows in new territories, including Love Island US and Sunday Night Takeaway in Australia, new dramas including World on Fire, Noughts and Crosses, Wild Bill, The Bay and Zero Zero Zero and returning dramas Gormorrah and Line of Duty.
“Online advertising continues to deliver strong double digit revenue growth. We are seeing some softening in ITV Family NAR in Q4 due to the increasingly uncertain economic environment and as a result we expect total advertising to be down around 3% in Q4 and broadly flat over the full year.
“We are very focused on executing our strategy to create a stronger, structurally sound business, building on our strong operating performance in the areas of the business which are under our control. We are making good progress with implementing the strategy – the investment and cost saving programmes which we set out in July are on track, and as previously mentioned, we will update the market in February on our SVOD plans.”
· Overall performance for the first nine months in line with our expectations
· Total external revenue was up 6% at £2,257m (2017: £2,139m), with continued growth across all parts of the business
· Total ITV Studios revenue was up 10% at £1,107m (2017: £1,004m), with organic revenues up 7%
· ITV total advertising (NAR, online and sponsorship) was up 2%, with 43% growth in online advertising
· Broadcast & Online revenue was up 2% to £1,509m (2017: £1,482m)
· Strong viewing performance with ITV Family share of viewing up 9% and online viewing up 37%
· ITV total advertising (NAR, online and sponsorship) is expected to be broadly flat over the full year with continued double digit growth in online
· Strong balance sheet and healthy liquidity
