(Alliance News) - ITV PLC on Thursday said it performed in line with expectations in the first quarter of 2023, though revenue fell amid a weaker advertising market.
It is optimistic about the upcoming Rugby World Cup and summer Love Island series drawing audiences, however.
Total revenue for the London-based television broadcaster and content producer was down around 7.0% to GBP776 million from GBP834 million a year earlier. Total ITV Studios revenue was flat on-year at GBP457 million, while in ITV Media & Entertainment, it fell some 9.2% to GBP495 million.
Total advertising revenue fell 10%, as expected, in an outcome the company said bettered "the wider TV advertising market".
Chief Executive Carolyn McCall said: "We are looking forward to Q3 with Love Island and the Rugby World Cup set to draw large broadcast and streaming audiences."
ITV M&E houses the new ITVX streaming arm.
"We are further strengthening ITVX with must-see content, such as Malpractice, Crime and Love and Death, and further enhancing the user experience. This, together with our deep relationships with advertisers and strong demand for digital advertising through Planet V, continues to give us confidence that we will deliver at least GBP750 million of digital revenues by 2026," the company said.
It added that ITVX had a 49% increase in streaming hours and 29% growth in digital revenue in the quarter, boosted by Nolly and The Twelve.
Looking ahead, ITV expects at least 5% average organic growth per year to 2026, and to "grow ahead of the market", hailing diversification of the business. The company aims for an adjusted earnings before interest, tax, depreciation and amortisation margin for ITV studios of 13% to 15% over the period to 2026, compared to 12% in 2022.
It added that it maintains committed to delivering GBP15 million of cost savings in 2023.
ITV shares were 5.4% lower at 72.98 pence each in London on Thursday morning.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
ITV (ITV)