Studios, digital deliver for ITV in third quarter | Major Businesses | Business | News | Rapid TV News
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Double-digit sales growth in both its digital business line and Studios production powerhouse has seen the UK’s leading commercial broadcaster deliver a 6% increase in total revenue for the first nine months of 2022.
ITV logo large 19 Oct 2020
In a trading update for the nine months to 30 September 2022, ITV generated total external revenue of £2.523 billion, up 6% on an annual basis, while total non-advertising revenue was up 13% at £1.619 billion, representing over 50% of the company’s total revenue.

Drilling down into individual business lines, ITV Studios total revenue rose 16% compared with the third quarter of 2021 to amount to at £1.387 billion, growing ahead of the market. The company noted ITV Studios growth drivers as being a wide range of new and returning programmes and formats in the UK and internationally, including A Spy Among Friends, Hell's Kitchen USA, Let The Right One In and The Voice Germany.

ITV Media & Entertainment (M&E) revenue was down 2% at £1.561 billion with total advertising revenue (TAR) down 2%, as expected said ITV, against tough comparatives. The company noted that against 2019 TAR was up 6%.
Within this line, digital advertising revenue remains strong, up 13% at £227 million to the end of September, compared with the same period in 2021. Total M&E non-advertising revenue for the nine months to the end of September 2022 was down 3% with good growth in subscription revenue offset by the expected decline in SDN revenue and interactive revenues against tough comparatives in 2021.

Noting the KPIs for the line, ITV said there was good strategic progress with total digital revenues up 15% and total streaming hours broadly flat as the firm prioritises content on its own platforms to drive effective monetisation. Monetisable streaming hours on ITV Hub, ITV Hub+ and BritBox UK were up 10% in the nine months to 30 September 2022. At the same time, ITV claimed 93% of the top 1,000 commercially broadcast TV programmes and by maintaining a share of commercial viewing on its channels.

Commenting on the performance in the third quarter, ITV chief executive Carolyn McCall said: “While we remain mindful of the macroeconomic and geopolitical uncertainty there's strong operational momentum across both our Studios and Media & Entertainment divisions, as we continue to build a resilient, diversified business that can take advantage of the global growth in the demand for quality content and the desire of advertisers for both mass reach and data-led addressable advertising, targeting millions of UK viewers. ITV Studios continues to outperform the growing content market and will exceed 2019 revenues in 2022.”

Looking to the future, McCall noted that the launch of the new ITVX streaming hub would supercharge its online business, driving “significant” digital viewing and revenue growth, enabling ITV to deliver at least £750 million digital revenues by 2026. “In 2022, given the nature of ITV's cost base and mitigations already in place, we expect to be able to manage inflation. For 2023, continued higher rates of inflation will impact our cost base although we are looking carefully at further mitigation measures,” McCall added. “ITV's balance sheet is robust enabling us to invest in digital acceleration and deliver returns to shareholders in line with our capital allocation policy.”