U.K. TV giant ITV on Thursday reported record earnings for its ITV Studios production unit and a 2 percent advertising revenue increase for the full year 2024, compared with 2023.
ITV, led by CEO Carolyn McCall, said its total external revenue in the latest full year fell 4 percent, while adjusted profit before tax for the year rose 23 percent, “reflecting record profits in ITV Studios, higher profits and increased margin in Media & Entertainment” and cost efficiencies.
The company previously forecast that advertising revenue would be down around 6-7 percent in the fourth quarter and to end 2024 up around 2.5 percent amid “continued strong growth in digital advertising revenues.”
Total revenue at its production arm ITV Studios dropped by 6 percent in 2024, “impacted by the 2023 U.S. actors and writers strikes, a softer demand from free-to-air broadcasters and the phasing of deliveries.” However, the studio arm’s adjusted earnings before interest, taxes and amortization (EBITA) hit a record of £299 million ($386 million) though, up 5 percent from the previous record of £286 million set a year earlier.
“ITV Studios delivered many creative successes in the year, including Mr Bates vs The Post Office, the biggest drama in the U.K. in 2024, Fool Me Once – one of Netflix’s most-watched shows of all time, The Voice – the number one franchise of the year, Love Island USA – the number one reality series in the U.S., and Rivals – Disney+’s breakout hit.”
Early in 2024, ITV unveiled a strategic restructuring and efficiency program “to reshape the cost base, enhance profitability, and support the growth drivers of Studios and streaming. “By the end of 2024 we expect the program to have delivered incremental annualized gross savings of at least £50 million per year, giving a £30 million a year gross benefit in 2024,” McCall said at the time. “The ongoing program is designed to deliver further material incremental savings over a number of years.”
In November, ITV provided an update on its cost reduction initiatives, unveiling it would reach an additional £20 million of net cost savings in 2024, “£10 million of which is a reduction in content costs and £10 million of which is the early delivery of non-content savings (originally) planned for 2025.” That and overall trends continue “to give us the confidence that we will deliver an increase in group profit this year,” the firm said.
And on Thursday, ITV updated its progress further, saying it delivered £60 million ($77 million) of “permanent efficiencies in 2024, £10 million ($13 million) ahead of plan,” with the program set to deliver a further £30 million ($38.5 million) of non-content savings this year. “Our efficiency program has delivered savings which have funded growth investments, offset inflation and improved our margins,” McCall said.
“Three years ago we announced the second phase of our More than TV strategy and today’s results show our significant progress and success in navigating the rapidly changing media industry,” the CEO also said on Thursday. “ITV Studios has delivered record profits this year, despite the one-off impact of the writers and actors strike and a softer demand from free-to-air broadcasters, which reflects the strength, scale, diversification and creativity of ITV Studios production companies across the world.”
The company didn’t immediately address potential deals that it has explored for ITV Studios after recent reports of a possible merger with RedBird IMI’s All3Media.
McCall also touted streaming successes. “ITVX has been the U.K.’s fastest-growing streaming platform over the last two years and coupled with our programmatic advertising platform, Planet V, has delivered significant growth in both digital viewing and revenues and is providing attractive returns,” she said.
ITVX saw digital viewing up 12 percent in 2024, with digital advertising revenue up 15 percent. ITV highlighted “attractive returns” in its earnings update, adding that “by the end of 2025, we will have recouped the cumulative investment in ITVX, much earlier than anticipated.”
Concluded the CEO: “Our significant competitive advantages give us confidence that we will continue to deliver good growth in both ITV Studios and digital revenues, underpinned by the powerful reach and strong cash generation of broadcast. And we are becoming a more resilient business with content production and digital now accounting for close to two-thirds of our revenue. Our ongoing transformation ensures we are an adaptable and agile company, well positioned to deliver good profitable growth, strong cash generation and attractive returns to shareholders.”