Gloomy ITV predicts ad revenues will slide by up to 20% in June
Outgoing ITV chief Adam Crozier has forewarned investors to expect further falls in revenue after the broadcaster posted a 9% decline in net revenue to £393m over the first quarter.
Gloomy ITV predicts ad revenues will slide by up to 20% in June
The gloomy prognosis is centred on an expectation that advertisers will continue to tighten their belts as the year progresses although growth at its ITV Studios production arm may offset some of that softness, with revenues there bucking the downward trend with a 7% rise.
Admitting that he would be leaving the business under less than optimal trading conditions Crozier blamed an ‘uncertain economic environment’ for the broadcaster travails, while bracing investors for further misery down the line.
ITV now expects ad revenues to collapse by up to 20% in June principally due to the lack of any major football tournament this summer, with net advertising likely to decline by as much as 9% during the first half of the year.
ITV’s revenues declined by 3% over the first quarter versus the same period a year before, hitting £731m in total.
In a statement ITV said: “The company has a well-developed succession plan in place and a longer-term successor to Adam will be announced in due course.”
Crozier will stand down as chief executive by the end of the month after seven years at the helm of the commercial broadcaster with chairman Sir Peter Bazalgette set to take his place as interim chair until a successor can be found.