With both its Studios and Media & Entertainment divisions performing better than the UK’s leading commercial broadcaster expected at the beginning of the year, ITV has revealed a strong first half of 2022 with total group revenue rising 9% annually.
For the half year ended 30 June 2022, ITV posted total external revenue of £1.679 billion, up 8% compared with the same period in 2021, with revenue at the key ITV Studios business climbing up 16% on a yearly basis at £927 million. Media & Entertainment (M&E) revenue grew 4% to £1.065 billion and total advertising revenue (TAR) was up 5%. Within this, digital advertising revenue was up 20%.
Adjusted group EBITA was though down 3% annually at £318 million, reflecting additional investment of £58 million in content and £20 million in data and technology ahead of the launch of ITVX, the evolution of the ITV Hub on-demand service. Additional content investment, as previously guided, relates to a combination of the return of key shows disrupted last year by Covid and front-footed investment. EBITA was £228 million. and, statutory profit before tax was £219 million, £86 million more than in 2021.
Looking at drivers for the rising revenues, ITV noted that over the first half, the number of high-end scripted hours produced was up 82%compared with the same period a year ago, with the percentage of total ITV Studios revenue from streaming platforms in H1 growing from 16% to 19% with commissions or development deals with most of the major platforms. High end scripted hours grew 82% and revenue from streaming platforms grew strongly, now accounted for 19% of total revenues, up 3 percentage points.
The company noted that a strengthened streaming offering helped drive its best digital viewing with 814 million streams in H1 on ITV Hub, up 8% year on year, and a 6% annual rise in total streaming hours. Monthly active users were flat at 9.7 million compared with H1 2021 which saw popular programmes Oprah With Meghan and Harry and the Euro Football Championships. At the same time ITV’s linear performance saw a 33.7% share of commercial viewing (SOCV), similar to 2021, and 94% of top 1,000 commercial broadcast TV programmes.
“In M&E our investment in content, data and technology is already bearing fruit with digital advertising revenue up 20% driven by record levels of streaming on the ITV Hub, up 8% with 814 million streams in H1,” said ITV chief executive Carolyn McCall, commenting on ITV's half year results. "Despite the tough comparators of last summer, when the Euros and a rebounding economy drove record advertising revenues, TAR is expected to be broadly flat in the nine months to the end of September. We are mindful of the macro economic uncertainty, however we have for the first time ever in Q4, the football World Cup to look forward to.”
For the full year, ITV Studios is on track to exceed 2019 revenues over the full year with an exciting pipeline of scripted and unscripted programmes and is expected to grow at around 3% over the medium term. For the nine months to the end of September TAR is expected to be broadly flat compared with the same period in 2021. Compared with 2019, the 9 months are anticipated to be up 8% annually.
Adjusted group EBITA was though down 3% annually at £318 million, reflecting additional investment of £58 million in content and £20 million in data and technology ahead of the launch of ITVX, the evolution of the ITV Hub on-demand service. Additional content investment, as previously guided, relates to a combination of the return of key shows disrupted last year by Covid and front-footed investment. EBITA was £228 million. and, statutory profit before tax was £219 million, £86 million more than in 2021.
Looking at drivers for the rising revenues, ITV noted that over the first half, the number of high-end scripted hours produced was up 82%compared with the same period a year ago, with the percentage of total ITV Studios revenue from streaming platforms in H1 growing from 16% to 19% with commissions or development deals with most of the major platforms. High end scripted hours grew 82% and revenue from streaming platforms grew strongly, now accounted for 19% of total revenues, up 3 percentage points.
The company noted that a strengthened streaming offering helped drive its best digital viewing with 814 million streams in H1 on ITV Hub, up 8% year on year, and a 6% annual rise in total streaming hours. Monthly active users were flat at 9.7 million compared with H1 2021 which saw popular programmes Oprah With Meghan and Harry and the Euro Football Championships. At the same time ITV’s linear performance saw a 33.7% share of commercial viewing (SOCV), similar to 2021, and 94% of top 1,000 commercial broadcast TV programmes.
“In M&E our investment in content, data and technology is already bearing fruit with digital advertising revenue up 20% driven by record levels of streaming on the ITV Hub, up 8% with 814 million streams in H1,” said ITV chief executive Carolyn McCall, commenting on ITV's half year results. "Despite the tough comparators of last summer, when the Euros and a rebounding economy drove record advertising revenues, TAR is expected to be broadly flat in the nine months to the end of September. We are mindful of the macro economic uncertainty, however we have for the first time ever in Q4, the football World Cup to look forward to.”
For the full year, ITV Studios is on track to exceed 2019 revenues over the full year with an exciting pipeline of scripted and unscripted programmes and is expected to grow at around 3% over the medium term. For the nine months to the end of September TAR is expected to be broadly flat compared with the same period in 2021. Compared with 2019, the 9 months are anticipated to be up 8% annually.
