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(Alliance News) - ITV PLC on Thursday said earnings decreased in its latest year, and warned of external factors set to drive down its 2024 results.
However, the London-based television broadcaster and content producer also announced a share buyback worth up to GBP235 million, using the proceeds from selling its BritBox International Ltd stake last Friday.
ITV sold the 50% interest in the video subscription service to joint venture partner BBC Studios Ltd, for GBP255 million with net proceeds of GBP235 million. This reflected the broadcaster's decision to focus on its advertiser-funded streaming service ITVX.
ITV said repurchases of shares will start on Thursday in London and end no later than August 29, 2025.
ITV also released its full-year results on Tuesday. It said pretax profit dropped by 61% to GBP193 million in 2023, from GBP501 million in 2022, while earnings per share fell 51% to 5.2 pence from 10.7p.
Total revenue decreased by 2.0% to GBP4.26 billion from GBP4.35 billion with external revenue decreasing 2.3% to GBP3.64 billion. Total non-advertising revenue, however, increased 2.8% to 2.48 billion.
Total revenue for ITV Studios increased 3.5% to GBP2.17 billion, with "outstanding creative deliveries" including 'Squid Game: The Challenge' and 'Mr Bates vs The Post Office'. Its advertising revenue, on the other hand, fell 7.9% to GBP1.78 billion.
ITV declared an unchanged final dividend of 3.3p per share, leaving its total payout unchanged at 5.0p.
"Our Studios business recorded the highest ever revenues and profits and in its first year ITVX delivered strong growth in viewing and digital revenue with investment on plan," commented Chief Executive Carolyn McCall. "This growth in production and streaming substantially offset the challenging linear TV advertising market conditions."
McCall also noted the success of ITV's ongoing cost saving programme, which is aiming for GBP150 million in savings between 2019 and 2026 and has already reached GBP130 million, putting it on track to achieve its goal next year.
"ITV has a leading, scaled, global Studios business, a high growth streaming service and a cash generative linear advertising business," she added. "This ensures that we are well placed to grow profits from here as we continue to drive material efficiencies, invest behind our strategic priorities and deliver returns to shareholders."
Going forward, ITV said it is making "great progress" towards its 2026 targets. These include ITV Studios achieving average organic revenue growth of 5% annually from 2021 to 2026, with digital revenue reaching at least GBP750 million.
Shares in the broadcaster traded 7.9% higher at 65.76p late on Thursday morning in London.
By Emma Curzon, Alliance News reporter
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