ITV buoyed by programme-making

BROADCASTER ITV has seen revenue growth from programme making counter a flat advertising market.

In the six months to the end of June the group saw revenues climb 1% to £1.14bn while pre-tax profits were up 11% to £179m.

Earnings before interesat, tax, depreciation and amortisation (EBITDA) grew 10.6% to £291m.

Non-advertising revenue was up 11% to £568m. The ITV Studios arm, which makes shows such as Coronation Street and Jeremy Kyle in Manchester, recorded revenue growth of 11% to £395m during the period. EBITDA grew 26% to £63m.

Across its channels national advertising revenue (NAR) slipped 3% to £741m. Ad revenue was down 16% in June but ITV expects this to rebound in July, up 12%, and be broadly flat over the nine months to the end of September.

Chief executive Adam Crozier said: “We’re making good progress with our strategy of growing and rebalancing the business as we build new revenue streams and improve margins.

“In the first six months of the year ITV continued to increase group profits and revenues despite the expected fall in our H1 advertising revenues. Non-advertising revenues were up by 11% to £568m, driven by significant growth in Online, Pay & Interactive and in ITV Studios.

“ITV Studios delivered further growth in the UK and internationally both organically and through selective acquisitions in our key target markets – with total Studios revenues up 11%.”

He added: “As we anticipated, the shape of the television advertising market this year is very different to 2012. In spite of monthly volatility we expect ITV Family NAR to be broadly flat for the nine months to the end of September with Q3 up 9%. We expect both ITV Studios and Online, Pay & Interactive to deliver double digit revenue growth for the year as a whole as we continue to rebalance and strengthen ITV.”