ITV Profits Up 40% But Studios Hit By U.S. Strikes

ITV profits improved in the first half of 2024 following the revelation that it would be making significant staff layoffs.

The commercial net’s adjusted EBITA was up 40% to £212M ($273M), although revenues dipped slightly to £1.9B.

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CEO Carolyn McCall said “we are confident of delivering increased adjusted EBITA this year, following the year of peak net investment in 2023.”

Within ITV Studios, the production giant that just announced it was buying Sherlock producer Hartswood Films and selling its share in Blumhouse TV, turnover was down 13% to £869M, however, impacted by the 2023 U.S. writers’ and actors’ strikes. The strikes will delay around £80M of revenue from 2024 to 2025. The turnover dip included the benefit of £30M of revenue following the transfer of sports production from the media and entertainment division.

ITV Studios profits were up by around 5%, according to the just-released H1 results, and ITV said that over the full year the studios arm is “expected to deliver record profits driven by an increase in higher margin catalogue sales, and continued action to drive efficiencies.” ITV also said there had been “lower demand from free-to-air broadcasters in Europe in the short term.” ITV Studios U.S. revenue also fell significantly, by one third, to £117M.

McCall added: “ITV Studios is performing well despite the expected market backdrop and is forecast to deliver record adjusted EBITA over the full year as a result of its scale, its diversification by product, geography and customer, its outstanding creative output and the actions we are taking to drive efficiencies.”

The broadcasting arm is set to make dozens of layoffs over the coming months that could amount to around 200, while ITV Studios-backed Love Island producer Lifted is making around 10% of its staff redundant.

The cost and efficiency program was raised as partly responsible for the improved results. Ad revenue also showed green shoots, up 10%, while digital revenues were up 17%.

Within the media and entertainment commissioning division, led by programs boss Kevin Lygo, turnover was up 7% to just over £1B.

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