ITV revenues drop as Studios hit by Hollywood strikes
By Michele Maatouk
Date: Thursday 07 Nov 2024
(Sharecast News) - Broadcaster ITV reported a drop in revenue for the first nine months of the year as its Studios arm was hit by the US actors' and writers' strike.
In the nine months to 30 September, group revenue fell 8% to £2.74bn, with growth in total advertising revenue (TAR) offset by the decline in ITV Studios revenue.
Total revenue at ITV Studios slumped 20% to £1.22bn. This was impacted by the expected phasing of production deliveries which are heavily weighted to the fourth quarter, the 2023 US writers' and actors' strikes and lower demand from free-to-air broadcasters in Europe in the short term.
ITV said it continues to expect its Studios business to deliver record adjusted EBITA, at a margin within its 13 to 15% target range. With the impact of the US strikes and lower demand from free-to-air broadcasters, it expects total revenue to decline by mid-single digits in 2024.
The broadcaster announced an additional £20m of net cost savings in 2024, £10m of which is a reduction in content costs and £10m of which is the early delivery of non-content savings planned for 2025.
This is in addition to the previously-announced £40m of incremental cost savings through "restructuring, improved efficiency and simplifying ways of working".
"Coupled with our strategic delivery and revenue outlook, this continues to give us the confidence that we will deliver an increase in group profit this year," said chief executive Carolyn McCall.
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