ITV has seen its total advertising revenues fall 5% during the first half of the year, though the broadcaster said the results are “better than expected” given the ongoing political and economic environment.
With no end to the Brexit uncertainty in sight, ITV has said it expects the impact on its ad revenues to continue, and has forecast a Q3 result of between -1% and +1%.
“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,” said the broadcaster’s CEO, Carolyn McCall.
However, while ad revenues are down overall, online revenues are up 18% – boosted by the continuing success of the Love Island phenomenon which has rounded off the first half of the year.
ITV2, which hosts Love Island, has seen its share of voice among 16-34 year olds grow 7%, with the reality show the most watched programme of the year for young adults across any channel.
Capitalising on its success, ITV has today confirmed that it will be rolling out a second Love Island series per year from 2020, to air in the winter.
“We are making good progress in each area of our strategy as we become an increasingly digital entertainment company,” McCall added. The broadcaster plans to launch both its joint online streaming service with the BBC, BritBox, and its new programmatic addressable ad platform for the ITV Hub by the end of the year.
Elsewhere, total revenues fell 7% to £1.5bn, and adjusted EBITA profits were down 13% to £327m. The sales of programming and distribution arm ITV Studios fell 6% to £758m, though deliveries are weighted to the second half of the year.
Commenting on the results, Mihir Haria-Shah, head of broadcast at behavioural planning agency Total Media, said ITV has shown over the last quarter that it is “starting to fight back” against its digital competitors with the announced launches of BritBox and its addressable advertising product on ITV Hub.
“Since Carolyn McCall took the helm at ITV she has promised change, diversification and put the power of TV at the heart of all ITV does,” he said.
“Whilst the results may not reflect it, ITV is certainly moving in the right direction to ensure it remains at the forefront of the story telling world. Britbox in particular is incredibly exciting and ITV will need to see early signs of success from it to ensure investors keep faith in them”.
