British television giant ITV on Thursday reported better-than-expected earnings for the first half of 2022, including a 6% increase in total overseas revenue and a 5% improvement in revenue. . the period prior to the year.
Management stressed that it was “cautious” of macro clouds and would monitor them, but told reporters the company has yet to see an impact on its advertising business. ITV also hasn’t seen a slowdown in momentum from streaming subscribers like Netflix has seen with its BritBox service or a slowdown in production work the streaming giant has commissioned, chief executive Carolyn McCall emphasized.
“We haven’t seen that on BritBox, not in the UK or internationally,” he said when asked about the undercurrents of undermining. “But that doesn’t mean we’re not aware of what’s going on in the subscription market. But that’s not a concern for us, I think, simply because BritBox is a very different kind of product. … Very specialized, content you don’t see anywhere else.”
Asked whether streaming giant Netflix’s more selective spending on content, among others, would affect ITV Studios’ production arm, he said: “We haven’t seen that. much more for Netflix in the past. But we haven’t seen ITV Studios slow down their explorations of Netflix. … In fact, our volume with them has been growing year after year.”
ITV reported on Thursday that its second-quarter advertising revenue was down 5%, including 9% in May and 13% in June, although it beat the company’s forecast for a quarterly decline of “about 6%”. Advertising revenue in the first half still managed to grow.
ITV Studios saw 16% revenue growth in the first six months of 2022, “growing in the broader market as we continue to diversify the business,” McCall said. “Peak script hours have increased by 82% and revenue from streaming platforms has increased dramatically, now representing 19% of total revenue.
ITV also announced streaming subscriber growth on Thursday, saying June ended with 1.45 million subscribers in the UK, while BritBox International hit 2.7 million.
The company’s total overseas revenue for the first half of 2022 increased by 8% to £1.68bn ($2.05bn). Earnings before interest, tax and depreciation (EBITA), a key profitability metric, fell 3% to 318 million pounds ($387 million), although the company increased spending in the fourth quarter to run free advertising. Streaming service sponsored by ITVX.
“ITV performed strongly across all businesses, with our studios and media and entertainment divisions performing better in the first half than we had expected at the start of the year. Revenues increased in both divisions,” McCauley said.
In terms of advertising, ITV had expected a weaker second quarter after a strong first quarter of 2022. In its first quarter financial report, it explained that “advertising benchmarks get much tighter in the second and third quarters” given the strong results. For last year’s European Championship.
“We’re focusing on macroeconomic uncertainty,” McCall said in Thursday’s update. “However, in the fourth quarter we have the (soccer) World Cup for the first time that we expect”, which will benefit ad revenue in November and December.
Compared to the same periods in 2021, July ad revenue is expected to decline “9%, better than we expected, and 18% in August, in line with our expectations,” ITV said in a statement. “Compared to 2019, July is expected to rise 17% and August 5%. He added: “It is too early to make a detailed forecast for September, but the nine months to the end of September (total ad revenue) should remain stable compared to the same period in 2021. Compared to 2019, it is expected to increase. 8% in 9 months.
Speaking about advertising trends on a conference call on Thursday, McCall said ITV continues to see “strong demand” and has so far seen no “material impact” on ad revenue despite rising energy bills and the cost of living. wider. “Everyone we’ve talked to knows there will be… some expected slowdown, but right now it’s not showing in our numbers.”
Meanwhile, ITV Studios is “on track for 2019 revenue with an exciting year-round portfolio of scripted and unscripted shows,” ITV noted Thursday. “We will continue to grow ahead of the market, which will grow by around 3% in the medium term.”
When asked about recent deals for natural history producer Plimsoll Production and Ben Stephenson’s new transatlantic brand, McCall described them as “an emphasis on genre and geography”, the latter fueling ITV’s effort to increase its offering of high quality for American streamers. . The two transactions represent “two very different strands of our strategy”, he added, with one being a full takeover of an existing company and the other being a tie deal with a highly experienced individual.
Kevin Ligo, managing director of ITV Studios, was asked Thursday about complaints related to alleged harassment and misogynistic behavior made to British media regulator Ofcom during the current final season of the hit show. love Island. “We constantly evaluate the show as it goes on… but when (the season) ends on Monday, we always sit down and discuss what we think about it, what the reaction was.”
However, he insisted: “It’s the best we’ve had in many years and I think everyone will like it. These days, it’s not uncommon for 5 million people to watch his show every night at 9pm. So something is being done right. But… we always have to try to improve and work on what we’ve already done”.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
