ITV PLC (LON:ITV) has published the following trading update today in advance of the Company’s Annual General Meeting to be held at 11 a.m.
Adam Crozier, ITV Chief Executive, said: “ITV’s overall performance and the shape of the UK advertising market are very much as we anticipated and our guidance for the full year remains unchanged.
External revenue was down 3% over the first quarter with the good growth in non-spot advertising revenues offset by the expected decline in ITV Family NAR, down 9%. Online, Pay & Interactive continued to grow strongly driven by increased demand for online advertising, up 22%. ITV Studios total revenues grew 7%, including currency benefit, with a solid pipeline of new and returning programmes coming through.
Viewing remains strong both on-screen and online. ITV main channel share of viewing is up 4%, ITV Family share of viewing is up 2% and online viewing is up 32%.
Over the first half we expect ITV Family NAR to be down 8% to 9%. In line with previous guidance April was up 5%, while we expect May to be down 8% and June to be down 15% to 20% against the tough comparator of the Euros last year. The first half performance will also be impacted by the weighting of the programme budget to the first 6 months and the phasing of Studios deliveries, most significantly the non-recurring benefit of The Voice of China in 2016.
While the economic environment remains uncertain our guidance over the full year remains unchanged. We expect to grow our share of broadcast and will continue to deliver good growth in Online, Pay & Interactive driven by strong demand for online advertising. We are confident that ITV Studios will report good organic revenue growth for 2017 and we have already secured over 75% of the expected full year’s revenue. We remain on track to deliver £25m overhead savings and a £25m reduction in the programme budget with the absence of a major sporting event.
We are pleased that the Digital Economy Bill, which includes the repeal of s73, has received Royal Assent with the Government confirming that repeal will be enacted without delay, paving the way for the introduction of retransmission fees.
We remain committed to our strategy of rebalancing and strengthening ITV. We see clear opportunities to invest for further growth across the business and our robust balance sheet and strong underlying cash flows allow us to continue to do so.”
· Q1 in line with our expectations and ITV on track to deliver full year guidance
· Total external revenue down 3% to £731m (2016: £755m)
· Total ITV Studios revenue up 7% at £343m (2016: £322m), with a good performance from ITV America and the benefit of foreign exchange
· Broadcast & Online revenues down 6% to £507m (2016: £539m), with continued strong growth in Online, Pay & Interactive offset by ITV Family NAR down 9% as expected
· Online, Pay & Interactive up 12%, driven by 22% growth in online advertising
· ITV share of viewing up 4%, ITV Family share of viewing up 2% and online viewing up 32%
· ITV Family NAR forecast to be down 8% to 9% over the first half
· Profit over H1 will be impacted by higher share of programme budget spend and timing of ITV Studios deliveries as previously guided
· On track to deliver continued good growth in Online, Pay & Interactive and good organic growth in ITV Studios over the full year
· Royal Assent for the Digital Economy Bill paves the way for re-transmission fees
