ITV has suffered a 5% decline in total advertising revenue over the six months to 30 June, lending further importance to the rollout of a long-awaited programmatic addressable advertising platform for the ITV Hub in the fourth quarter.
The terrestrial broadcaster is well on its way to becoming a digital entertainment company with the launch of BritBox coinciding with its new ad platform, positioning itself for future growth while aggressively slashing costs to provide a firmer financial footing.
To do so the broadcaster has raised its full-year saving goal by £5m to £40-45m.
These efforts won’t bear fruit for some time however, with the company weathering a 7% decline in total external revenues to £1,476m – despite strong growth in online revenues which surged 18%.
Chief executive Carolyn McCall commented: “ITV delivered another good viewing performance in the first half of the year. Online revenues grew strongly up 18% despite tough comparatives, with Love Island providing a strong finish to the half. This was reflected in better than expected total advertising revenue.
“The economic and political environment remains uncertain but we are very focused on delivering our strategy and creating a stronger, more diversified and structurally sound business to enable ITV to take advantage of evolving viewing and advertising opportunities.”
ITV blames the impact of political and economic uncertainty for impacting advertising demand, forecasting total advertising growth to sit at between -1% and +1% for the third quarter.