ITV Revenue Drops Despite 7 Percent Gain at Production Arm
The U.K. TV giant, led by the outgoing CEO Adam Crozier, posts its latest financials.
U.K. TV giant ITV, led by outgoing CEO Adam Crozier, on Wednesday reported a first-quarter revenue drop of 3 percent to 731 million pounds ($947 million).
That was despite a 7 percent gain at production arm ITV Studios to 343 million pounds ($445 million). The company cited a "good performance from ITV America and the benefit of foreign exchange."
Advertising revenue fell 9 percent as expected. ITV previously cited Brexit as a factor of uncertainty that has affected advertising spending.
Crozier recently said that he would stand down mid-year. He has overseen the company for seven years and led its transformation from an advertising-dependent networks company into a broader business with a big production arm, which he expanded via acquisitions, and digital assets.
"ITV’s overall performance and the shape of the U.K. advertising market are very much as we anticipated, and our guidance for the full year remains unchanged," said Crozier. "ITV Studios total revenues grew 7 percent, including currency benefit, with a solid pipeline of new and returning programs coming through. Viewing remains strong both onscreen and online." ITV forecast first-half 2017 ad revenue to fall 8 percent – 9 percent. "While the economic environment remains uncertain, our guidance over the full year remains unchanged," Crozier said. "We expect to grow our share of broadcast and will continue to deliver good growth in online, pay and interactive driven by strong demand for online advertising." And he said: " We are confident that ITV Studios will report good organic revenue growth for 2017, and we have already secured over 75 percent of the expected full year’s revenue."