ITV has revealed that it expects to see an increase in advertising revenue of a fifth during August, having revealed a two per cent total revenue increase of £30m to £1,309m.
The broadcaster saw a three per cent fall in advertising revenue during the first half of the year, but has claimed it expects advertising revenue to be ‘broadly flat’ for the first three quarters, with an increase in July of 12 per cent and an expected further increase next month of 20 per cent.
The broadcaster has also recorded a rise in online and interactive revenue of almost 20 per cent reaching £56m as it expects this area to deliver double digit revenue growth for the full year, having also recorded a 17 per cent increase in long form video requests through the broadcaster’s digital platforms.
Figures also revealed a rise in non-net advertising revenue (NAR) of 11 per cent, reaching £568m, including the 19 per cent increase from online, pay and interactive revenue, with an overall increase in external revenue of one per cent to £1,144m.
Pre-tax profits have risen by 18 per cent £179m with revenue reaching £1,144m leaving an operating profit of £255m and broadcast and online revenue of £914m
A total consideration of £53m was spent of the acquisitions of shares in UK company Garden and US companies High Noon and Think Factory.
Adam Crozier CEO of ITV described the figures as showing “good progress” for the company.
“In the first six months of the year ITV continued to increase group profits and revenues despite the expected fall in our H1 advertising revenues. Non-advertising revenues were up by 11 per cent to £568m, driven by significant growth in Online, Pay & Interactive and in ITV Studios.
“ITV Studios delivered further growth in the UK and internationally both organically and through selective acquisitions in our key target markets – with total Studios revenues up 11 per cent. We’re showing real momentum in our strategy of creating a robust international content business and in building substantial strength and scale in the US market.
“The improved variety and quality of the ITV schedule has driven a strong on-screen performance in the first half of the year with ITV Family share of viewing up 1 per cent.
Our cash generation remains strong and we continue to have a robust balance sheet to support the strategy and invest in our future growth.
As we anticipated, the shape of the television advertising market this year is very different to 2012. In spite of monthly volatility we expect ITV Family NAR to be broadly flat for the nine months to the end of September with Q3 up nine per cent. We expect both ITV Studios and Online, Pay & Interactive to deliver double digit revenue growth for the year as a whole as we continue to rebalance and strengthen ITV.”
The broadcaster also revealed that it is on track to deliver cost savings of £20m for the year.