A rebalanced business, with a focus on production, was driving another strong performance and paying dividends, literally, at ITV according to its interim results for the six months to 30 June 2016.The results showed that adjusted profits before tax (PBT) rose 9% year-on-year to £425 million, driven by an 11% increase in total external revenue to £1.503 billion.
Even though net advertising revenue (NAR) was flat at £838 million, non-NAR revenue, up 26% to £874 million (2015: £693 million). The star performer in this regard was, as has been the case for a while, ITV Studios whose total revenue was up 31% year-on-year to £651 million, while online, pay and interactive H1 revenue rose 26% annually to £107 million.
In terms of EBITA at the respective divisions, total Adjusted EBITA up 10% to £438 million with ITV Studios adjusted EBITA up 42% to £121 million and broadcast and online adjusted EBITA up 1% to £317 million.
Looking towards the rest of the year, the company said that ITV Studios was on track to deliver double-digit total revenue and adjusted EBITA growth over the full year, primarily driven by acquisitions it had made. It was also confident in delivering continued double-digit revenue growth in the online, pay & interactive division. However, ITC cautioned that ITV Family NAR was expected to be down around 1% for the nine months to the end of September and even expected to outperform the market in 2016.
Commenting on the results, ITV plc chief executive Adam Crozier said: “Our strategy of rebalancing and strengthening ITV and building a global production business of scale continues to deliver with double-digit revenue and adjusted EBITA growth in the first half of the year. On screen we’ve performed strongly with share of viewing on our main channel up 7% while at the same time long form video consumption increased by 50%. Against a backdrop of wider economic uncertainty following the EU referendum we have put in place a robust plan to allow us to meet the opportunities and challenges ahead.”
Even though net advertising revenue (NAR) was flat at £838 million, non-NAR revenue, up 26% to £874 million (2015: £693 million). The star performer in this regard was, as has been the case for a while, ITV Studios whose total revenue was up 31% year-on-year to £651 million, while online, pay and interactive H1 revenue rose 26% annually to £107 million.
In terms of EBITA at the respective divisions, total Adjusted EBITA up 10% to £438 million with ITV Studios adjusted EBITA up 42% to £121 million and broadcast and online adjusted EBITA up 1% to £317 million.
Looking towards the rest of the year, the company said that ITV Studios was on track to deliver double-digit total revenue and adjusted EBITA growth over the full year, primarily driven by acquisitions it had made. It was also confident in delivering continued double-digit revenue growth in the online, pay & interactive division. However, ITC cautioned that ITV Family NAR was expected to be down around 1% for the nine months to the end of September and even expected to outperform the market in 2016.
Commenting on the results, ITV plc chief executive Adam Crozier said: “Our strategy of rebalancing and strengthening ITV and building a global production business of scale continues to deliver with double-digit revenue and adjusted EBITA growth in the first half of the year. On screen we’ve performed strongly with share of viewing on our main channel up 7% while at the same time long form video consumption increased by 50%. Against a backdrop of wider economic uncertainty following the EU referendum we have put in place a robust plan to allow us to meet the opportunities and challenges ahead.”
