ITV plc Q3 Trading Update for the nine months to 30 September 2024
Q3 Key Messages
● As expected, ITV Studios Q3 revenue was impacted by the phasing of deliveries and the 2023 US writers' and actors' strike. Q3 YTD total Studios revenue was down 20%[1]
● ITV Studios is on track to deliver record adjusted EBITA[2] in FY 2024, reflecting efficiency gains and a significant Q4 delivery schedule. Total Studios revenue is expected to decline mid-single digits over the full year which is only marginally down year on year excluding the impact of the US actors' and writers' strikes
● ITVX continued to perform strongly with 14% growth in streaming hours and 15% growth in digital advertising revenue in the nine months to 30 September
● Total advertising revenue was flat in Q3, as expected. Full year 2024 TAR is expected to be up around 2.5% with Q4 expected to be down around 6-7% against the 2023 Rugby World Cup comparative. In addition, Q4 advertising bookings were impacted by the uncertainty in the lead up to the
● Today we are announcing an additional
Carolyn McCall, ITV Chief Executive, said:
"ITV's good strategic progress has continued in the first nine months of 2024 driven by strong execution and industry leading creativity.
"ITV Studios is performing well despite the expected impact of both the writer's strike and a softer market from free-to-air broadcasters. ITV Studios has had an excellent start to Q4, in line with expectations, which will ensure it achieves record profits in 2024. Studios has great creative and commercial momentum as demonstrated in the last few weeks with shows including Rivals for Disney+ and Ludwig for the BBC and is on track to deliver good revenue growth in 2025 and 2026.
"ITVX continued its strong performance, delivering double-digit growth in streaming hours and digital revenues. ITV maintained its unique position in linear television through the quality and breadth of its schedule, and ITV1 was voted Channel of the Year at the Edinburgh TV Awards.
"Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced
Group revenue performance for the nine months to 30 September 2024
● Group revenue was down 8% at
● Group external revenue was down 8% at
ITV Studios
Revenue performance for the nine months to 30 September 2024
● Total ITV Studios revenue was down 20% at
● During the period, ITV Studios delivered a wide range of new and returning programmes and formats in the
○ My Mum, Your Dad for ITV, Queer Eye for Netflix, Showtrial for the BBC and Love Island US for Peacock
Outlook
● Over the full year, we continue to expect ITV Studios to deliver record adjusted EBITA, at a margin within our 13 to 15% target range. With the impact of the US strikes and lower demand from free-to-air broadcasters, we expect total revenue to decline by mid-single digits in 2024
● ITV Studios is on track to deliver an unusually high number of productions in Q4 2024 which is expected to include, in the US: The Better Sister for Amazon Prime Video and Hell's Kitchen for Fox; in the
● ITV Studios is expected to deliver total organic revenue growth of 5% on average per annum from 2021 to 2026 - ahead of the market, and at a margin of 13 to 15%
Media & Entertainment (M&E)
Revenue performance for the nine months to 30 September 2024
● M&E revenue was up 4% at
○ Within this digital advertising revenue (a component of digital revenue) was up 15%
○ M&E non-advertising revenue was down 7%, as expected
● ITVX's good performance has continued in Q3 with a range of programmes such as the Euros, Love Island, The Tower and Douglas Is Cancelled driving total streaming hours up 14% year-on-year over the nine months to 30 September. Monthly active users continue to grow in line with our expectations
● Digital revenues grew 11% with strong growth in digital advertising revenue partly offset by the actions we have taken during the year to simplify the paid streaming proposition, which have an impact on subscriptions and subscription revenue
● We have maintained our unique position in linear television through the quality and breadth of our schedule, with 92% of the top 1,000 commercially broadcast TV programmes and 32.3% share of commercial viewing on our linear television channels
Outlook
● Over the full year, we expect TAR to be up around 2.5% compared to 2023 with Q4 expected to be down around 6-7% against the 2023 Rugby World Cup comparative, which gave ITV1 and ITVX their biggest audiences of the year. In addition, Q4 advertising bookings were impacted by the uncertainty in the lead up to the
● With ITVX's continued strong performance we are further maximising viewing and optimising investment. We expect total content costs over the FY 2024 to be around
● We remain on track to deliver at least
Notes to editors
1. Unless otherwise stated, all revenue and operating figures refer to the nine months ended 30 September 2024, with growth compared to the same period in 2023.
2. Group revenue performance
Revenue for nine months to 30 September (£m) |
2024 |
2023 |
Change £m |
Change % |
Media and Entertainment |
1,524 |
1,459 |
65 |
4 |
ITV Studios |
1,217 |
1,516 |
(299) |
(20) |
Group revenue |
2,741 |
2,975 |
(234) |
(8) |
Internal supply |
(420) |
(443) |
23 |
5 |
Group external revenue |
2,321 |
2,532 |
(211) |
(8) |
Revenue for nine months to 30 September (£m) |
2024 |
2023 |
Change £m |
Change % |
Total advertising revenue |
1,313 |
1,233 |
80 |
6 |
Non-advertising revenue |
1,428 |
1,742 |
(314) |
(18) |
Internal supply |
(420) |
(443) |
23 |
5 |
Group external revenue |
2,321 |
2,532 |
(211) |
(8) |
3. Based on ITV estimates and current forecasts, total advertising revenue (TAR), which includes ITV Family net advertising revenue (NAR), digital advertising and sponsorship, is expected to be down around 6-7% in Q4 2024 and up around 2.5% over the full year 2024 compared to 2023, with continued strong growth in digital advertising revenues.
4. Key performance indicators
Nine months to 30 September |
2024 |
2023 |
Change % |
ITV Studios total organic revenue (decline)/growth |
(19)% |
7% |
- |
Total digital revenue |
|
|
11 |
Total streaming hours (hrs) |
1,247m |
1,095m |
14 |
Share of commercial viewing |
32.3% |
32.8% |
(0.5% pts) |
Share of top 1,000 commercial broadcast TV programmes |
92% |
93% |
(1% pt) |
● Our definition of total organic revenue excludes the impact of any acquisitions made during the current or prior period. It also excludes the year-on-year movement in foreign exchange. In the nine months to end of September 2024, the unfavourable translation impact of foreign exchange on total revenue was
● Total digital revenue includes digital advertising revenue, subscription revenue, linear addressable revenue, digital sponsorship and partnership revenue, ITV Win and any other revenues from digital business ventures.
● Total streaming hours measures the total number of hours viewers spend watching ITV across all streaming platforms. This figure includes both ad-funded and subscription streaming. For the nine months to 30 September 2023, total streaming hours were reported as 1,096 million hours, which included some estimates of total streaming viewing from third-party data providers. This has since been updated to reflect more recently available and accurate data.
● The share of top 1,000 commercial broadcast TV programmes KPI includes TV viewing from transmission and seven days post-transmission on catch up, as well as six weeks prior to the transmission window. It excludes programmes with a duration of less than ten minutes. This metric is calculated as a 12-month rolling average to normalise seasonal scheduling.
● ITV Family share of commercial viewing is the total viewing of audiences over the period achieved by ITV's family of channels as a proportion of all commercial broadcast TV viewing in the
● % change for performance indicators is calculated on rounded numbers.
5. Total Studios organic revenue at constant currency was down 19% to
6. On 30th October 2024, ITV Studios announced it had acquired a majority stake in
7. ITV's cost saving programme is progressing well. We are on track to deliver the previously announced
○ The new ongoing strategic restructuring and efficiency programme which will deliver
○
Today we are announcing an additional
8. As at 30 September 2024 net debt was
Net debt includes net proceeds from the sale of BritBox International which is funding the current
As at 30 September 2024, the net cash held in Hartswood Films (acquired by ITV Studios on 25 July 2024) was not included in the Group's net debt position. The Group expects to complete the valuation of acquired assets and liabilities before the end of the year when the assets, liabilities and financial performance of Hartswood Films will be included in the Group's results.
9. In October 2024, the Group entered into a new
10. On an accounting basis, the net pension surplus of the defined benefit schemes as at 30 September 2024 was
11. As of market close on 31 October 2024, ITV had bought back 177,871,955 shares, of which 48,892,678 have been cancelled, 8,500,000 have been transferred to the Employee Benefit Trust (EBT), and 120,479,277 are being held by ITV as Treasury Shares until required by the EBT.
12. Figures presented in this Trading Statement are not audited. This announcement contains certain statements that are or may be forward looking statements. Words such as "targets", "expects", "aim", "anticipate", "intend", or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting ITV. Although ITV believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. They are not historical facts, nor are they guarantees of future performance; actual results may differ materially from those expressed or implied by these forward-looking statements. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward looking statements. These factors include, but are not limited to (i) the general economic, business, political, regulatory and social conditions in the key markets in which the Group operates, (ii) a significant event impacting ITV's liquidity or ability to operate and deliver effectively in any area of our business, (iii) a major change in the
Forward-looking statements speak only as of the date they are made and, except as required by applicable law or regulation, ITV undertakes no obligation to update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. Nothing in this statement should be construed as a profit forecast.
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[1] This includes a
[2] This includes the impact from the change in legislation on Audio-Visual Expenditure Credits (AVEC), effective on expenditure incurred from 1 January 2024
[3] Adjusted EBITA
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