Drilling down to individual business lines, ITV Studios’ total revenue rose 16% from the third quarter of 2021 to £1.387 billion, ahead of the market. The company noted that ITV Studios’ growth drivers were a wide range of new and recurring programs 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 fell 2% to £1.561bn with total advertising revenue (TAR) down 2% as expected, ITV said, against tough comparisons. The company noted that compared to 2019, TAR was up 6%.
Within this line, digital advertising revenue remains strong, up 13% to £227m at the end of September, compared to the same period in 2021. % with good subscription revenue growth offset by the expected decline in SDN revenues and interactive revenues compared to difficult comparatives in 2021.
Noting the KPIs for the line, ITV said there was good strategic progress with total digital revenue up 15% and total streaming hours broadly stable as the company prioritizes content over its own platforms to drive effective monetization. Monetizable streaming hours on ITV Hub, ITV Hub+ and BritBox UK increased by 10% in the nine months to September 30, 2022. At the same time, ITV claimed 93% of the top 1,000 commercially broadcast TV programs and maintaining a share of commercial viewing. on his chains.
Commenting on the third quarter performance, ITV Chief Executive Carolyn McCall said: “While we remain mindful of macroeconomic and geopolitical uncertainty, there is strong operating momentum across our Studios and Media & Entertainment divisions, so that we continue to build a resilient and diverse business. a company that can capitalize on the global growth in demand for quality content and advertisers’ desire to have both mass reach and addressable data-driven advertising, targeting millions of UK viewers. ITV Studios continues to outperform the growing content market and will top 2019 revenues in 2022.”
Looking to the future, McCall noted that the launch of the new ITVX streaming hub would boost its online business, leading to “significant” growth in digital viewing and revenue, allowing ITV to generate at least £750 million. sterling in digital revenue by 2026. “In 2022, given the nature of ITV’s cost base and the mitigation measures already in place, we expect to be able to manage inflation. For 2023, ever-higher rates of inflation will impact our cost base, although we are carefully considering other mitigating measures,” added McCall. “ITV’s balance sheet is strong, allowing us to invest in digital acceleration and deliver returns to shareholders in line with our capital allocation policy.”