ITV adds temporary spending cuts as advertising retreats
British broadcaster ITV announced additional temporary savings as advertising revenue declined. Management expects fourth-quarter advertising to fall 5–10 per cent and identified 30 million pounds of cuts, mainly in content spending. Digital revenue and streaming hours grew, while the group’s nine-month total revenue fell 1 per cent.
Economics & Markets··Midday
Advertising decline brings further spending cuts
British broadcaster ITV announced additional temporary cost reductions as advertising revenue declined.[1], [2]
The company identified 30 million pounds of extra fourth-quarter savings: 25 million pounds from content and 5 million pounds from discretionary non-content expenditure. It expects annual content spending of approximately 1.2 billion pounds. Management forecasts advertising revenue to decline 5–10 per cent in the fourth quarter and 2–3 per cent for the year. It attributed weaker demand to economic uncertainty, advertising growth on global streaming platforms and food-advertising rules.[1]
Digital growth accompanies a quarterly advertising fall
ITV’s nine-month digital revenue increased 7 per cent to 461 million pounds and digital advertising grew 6 per cent. Streaming hours rose 29 per cent to 2,153 million, against an updated comparison of 1,668 million. Total advertising revenue fell 1 per cent over nine months and 8 per cent in the third quarter. Group revenue for the nine months ended September fell 1 per cent to 2,762 million pounds; external revenue declined 2 per cent to 2,358 million pounds.[1]
Studios deliveries concentrate in the final quarter
ITV Studios, the group’s production business, recorded revenue of 1,332 million pounds, down 1 per cent. Management said production deliveries and licensing agreements were heavily weighted towards the final quarter. Media & Entertainment, its broadcasting and streaming division, generated revenue of 1,430 million pounds, also down 1 per cent. At the end of September, ITV had 940 million pounds of liquidity, including 240 million pounds in cash and 700 million pounds in undrawn committed facilities. Net debt was 695 million pounds, compared with 652 million pounds at the end of June.[1]
