ITV Share News (ITV)

(Alliance News) - ITV PLC on Thursday said advertising trends are improving, though the latest virus restrictions pose a headwind to ITV Studios.

Total external revenue was down 16% to GBP1.86 billion in the first nine months of 2020. ITV Studios revenue fell 19% to GBP902 million and Broadcast revenue declined 13% to GBP1.27 billion, with ITV total advertising down 16% and online revenue up 2%.

ITV said it saw advertising trends improve in the third quarter, with total advertising spend down 7% year-on-year. July spend was down 23%, August up 3%, September down 2% and October down 1%.

ITV forecasts total advertising revenue to be "slightly up" year-on-year in the fourth quarter with November up around 6% compared with a year ago. This assumes the current lockdown restrictions in England end as planned on December 2, the broadcaster added.

On ITV Studios, the firm said it has successfully resumed the majority of its productions, though noted headwinds facing the unit.

"We are seeing encouraging signs in both our divisions. Advertising trends are improving with Q4 forecast to be slightly up year on year and 85% of our productions in the UK and internationally that were paused as a result of Covid-19 are back in production or have been delivered. However, Covid restrictions and further national lockdowns have added production costs and are making it challenging to bring ITV Studios productions back to full capacity," said Chief Executive Carolyn McCall.

Shares in ITV were up 0.2% at 89.92 pence in London on Thursday.

By Lucy Heming; lucyheming@alliancenews.com

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