ITV reports solid Q1 performance, does not expect a direct rate effect
ITV maintains a self -assured prospect with regard to potential US trade rates and reports a solid start of 2025, whereby the Q1 results of the British broadcaster are taking out expectations despite challenging market conditions.
The British media giant noted in his Q1 trading update that although “the possibility of trading rates in the US continues to assess”, ITV Studios “only produces TV programming and therefore not a direct impact related to the imposition of rates on films.”
The total turnover of external group increased by 4% to £ 756 million ($ 1 billion), with a growth in the turnover of external studios more than compensating for the decrease in total advertising income (TAR). These performance reflect the increasingly diversified income flows of the company.
ITV Studios yielded 1% revenue growth in Q1, up to $ 513 million, with external revenue that increases 20% thanks to “strong demand from and timing of deliveries on, global streaming platforms.” These robust external performance helped to compensate for a fall of 26% in internal income, which was influenced by ‘the non-backing of’ Saturday Night Takeaway ‘and’ The Tower ‘and the annual difference in phasing programs such as’ The Bay’ and ‘Grace’.
During the quarter, ITV Studios delivered various high -profile productions, including “Run Away” for Netflix, “The Better Sister” and “The Devil’s Hour” for Prime Video, “Malpactice” for ITV, and unwritten hits such as “Squid Game: The Challenge” for the bbc and “I kiss a boy” for the bbc.
CEO Carolyn McCall set an optimistic tone and stated: “ITV Studios returned to growth after the impact of the American strikes and is on course to achieve good growth in total income throughout the year, weighed to H2 as led earlier.”
On the Front of Media & Entertainment, the ITVX streaming service continued robust performance with a total streaming hours with 12% and monthly active users who are in line with the expectations of the company. Digital advertisement -turnover rose by 15%and performed considerably better than the wider advertising market.
However, the total M&E turnover fell by 3% to $ 650 million, with the total advertisement turnover by 2% as previously predicted. The company maintained its strength in delivering massive range for advertisers, with “91% of the top 1,000 commercially broadcast TV programs and 34.0% share of commercial views” on its linear television channels.
Looking ahead, ITV warned that the total advertisement income of the second quarter of the fight against advertising is expected to fall approximately 14% compared to 2024, which is a reflection of heavy comparisons against last year’s European championship, which substantial advertisements were driving. In comparison with 2023, however, it is expected that Q2 and H1 2025 Tar are expected to be “wide level year after year”.
McCall remains cheerful about the process of the company: “Although the macro-economic environment is uncertain, we remain convinced that our strategic initiatives, our focus on financial and cost discipline and our diversified income and customer base will successfully enable us to navigate an evolving market landscape and provide long-term value to our shareholders.”
The broadcaster completed his $ 312.4 million share purchasing on 4 April, with 322,719.975 shares purchased. Moreover, ITV Studios acquired a majority stake in Moonage Pictures, “one of the fastest growing independent producers of high-end drama in the UK, including global hit ‘The Gentlemen’.”
The upcoming ITV programming includes the ever -popular ladies, the new entertainment series “Shark: Celebrity Infested Waters” and new and recurring dramas such as “Code of Silence”, “I fought the law” and “Ridley.” The company remains on schedule to deliver at least $ 997 million in digital income by 2026.
