ITV continues to ‘rebalance’ as earnings grow

BROADCASTER ITV has capped a strong year with revenues from programme making and other sources growing to nearly match advertising income.

In the 12 months to the end of December overall revenues were up 9% to £2.3bn and pre-tax profits jumped 30% to £435m.

The ITV Studios arm, which makes shows such as Coronation Street and Jeremy Kyle at its new facility at Salford Quays, grew income by 20% to £857m, helped by four acquisitions. Online, pay and interactive was up 16% to £118m.

Overall, non-national advertising revenue grew by £175m to £1.21bn and ad revenue across the ITV “family” of channels grew 2% to £1.5bn. The channels made a strong start to 2014 with ad revenue up 5% in January and February.

ITV delivered £28m of cost savings and made a number of investments across the business but ended the year with £164m in net cash, about the same as in 2012. Chief executive Adam Crozier said this was down to the “strength of our underlying cash flow”.

He said: “ITV has taken another significant step forward with 9% revenue growth and for the fourth year in a row we delivered double digit profit growth. All parts of the business are progressing well as we continue to rebalance ITV. Total non-advertising revenues again grew strongly up £175m driven by good performances in ITV Studios and Online, Pay & Interactive.

“The investment we have made in content has driven significant revenue and profit growth in ITV Studios – up 20% and 24% respectively – both organically and through the selective acquisitions we have made in the UK and the US.”

The board is proposing a final dividend of 2.4p to give a full year dividend of 3.5p, up 35% and a special dividend of 4p in line with last year.