ITV escapes hangover from Olympics and is boosted by revenues surge from studios
Wednesday 14 November 2012
ITV cheered investors yesterday as it said advertising had fallen less than feared since the Olympics and its production arm ITV Studios, which makes shows such as I'm A Celebrity and Coronation Street, saw revenues surge by a fifth.
The shares jumped almost 9 per cent to 94.6p, making ITV the biggest riser on the FTSE 100.
Adam Crozier, the chief executive, said advertising revenues should be down only 2 per cent across October and November and are forecast to be flat in December, despite economic jitters and a ratings slide for flagship show X Factor.
The ad performance was much better than some media buyers were forecasting only a few weeks ago, when big agency groups such as WPP and Publicis warned of a sharp slowdown in client spending since September.
Mr Crozier's relatively positive outlook follows similar noises from Trinity Mirror, owner of the Daily Mirror, which said last week that revenue trends have been improving in November.
ITV still endured a tough third quarter as viewers flocked to the BBC to watch the Olympics, with ad revenues declining 6 per cent, although that was ahead of the wider TV market.
Ad revenues for the full year should be flat, but ITV increased group sales by 4 per cent to £1.57bn in the nine months to September thanks to ITV Studios.
The in-house production arm, which makes shows not only for ITV but also other broadcasters such as the BBC and Channel 4, should report over £100m in profit this year, close to a quarter of group profits.
"The number of new commissions and recommissions already secured for 2013 gives us confidence that there will continue to be good, underlying growth in the Studios business," said Mr Crozier.
- 1 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
- 3 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
- 4 Nicki Minaj finally releases predictable 'Anaconda' video
- 5 James Foley 'beheading': Met police warn public watching murder video could be criminal offence
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again. It would be immoral to bring it into the world'
Scottish Independence Referendum: Salmond described as 'arrogant, ambitious and dishonest' by Scottish women
iJobs Money & Business
£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...
Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...
£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...
£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...