ITV advertising revenue rebounds as broadcaster navigates lockdowns

(Alliance News) - ITV PLC on Wednesday said its revenue rose in the first quarter of 2021 despite the continued impact of the pandemic.

Revenue for the three months to March 31 rose a modest 2% to GBP856 million from GBP842 million at the start of 2020, a period when Covid restrictions "only had a limited impact". Total external revenue was up 2% at GBP709 million from GBP694 million in the first quarter of 2020.

ITV Studios revenue was up 9% at GBP372 million from GBP342 million. In the Media & Entertainment division, revenue was down 3% at GBP484 million from GBP500 million, hurt by the national lockdown in the UK.

ITV total advertising revenue was down 6% in the first quarter, but online revenue was up 14%. The London-based broadcaster said advertising trends had been positive since March, with April advertising revenue up 68% from last year, and May expected to be up 85%.

ITV total viewing was up 1% in the first quarter. Online view was down 11%, due to the absence of the winter episodes of popular reality dating show Love Island in January and February. Excluding Love Island, online viewing was up 23%.

ITV Chief Executive Carolyn McCall said: "We have made a good start to 2021 with total revenue and total viewing both up, despite the continuing impact of the pandemic. We finished the quarter strongly with the substantial majority of our shows back in production and a recovery in the advertising market."

ITV did caution that productions remain exposed to the risks linked with the pandemic and that revenue could be hurt by new lockdowns.

McCall commented: "We are encouraged by the UK roadmap out of lockdown and remain cautiously optimistic about the year ahead. We remain committed to investing in the acceleration of our strategy to digitally transform ITV which will, in part, be funded by the delivery of our cost saving targets."

ITV said that while there is uncertainty, the macro environment continues to improve, and it was encouraged by the outlook for total advertising in the first half, which it forecasts will be up around 26%, compared to the same period in 2020.

Further, ITV said it was confident that it will deliver its GBP30 million cost saving target for 2021.

Shares in ITV were up 0.2% at 124.50 pence on Wednesday in London.

By Will Paige; willpaige@alliancenews.com

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