ITV Revenues Down and Studios Business Projected to Remain Flat Due to Hollywood Strikes, Despite Advertising Uptick

U.K. broadcaster ITV has reported mixed financial fortunes for the first quarter of 2024.

The advertising revenue growth of 3%, with the second quarter expected to be up around 12%, is offset by the downturn in revenues from ITV Studios. Total revenue was down 7% to £887 million ($1.10 billion), compared to £952 million ($1.18 billion) during the same period in 2023.

Total ITV Studios revenue was down 16% to £382 million (2023: £457 million), “due to the phasing of deliveries which are heavily weighted to H2 and the expected impact from both the 2023 U.S. writers and actors strikes and the weaker demand from free-to-air broadcasters in Europe who have been holding back spend until they see more certainty in the advertising market,” the broadcaster said.

During the quarter ITV Studios delivered “The Reluctant Traveller” for Apple TV+, “The Red King” for Alibi, “The Gathering” for Channel 4 and “I’m A Celebrity… Get Me Out Of Here!” in Germany for RTL.

Media and entertainment revenue was up 2% to £505 million (2023: £495 million) and within this digital advertising revenue was up 14%.

Streamer ITVX continued its strong performance with total streaming hours up 16% and monthly active users growing, the broadcaster said.

The broadcaster said that it expects ITV Studios total revenues to be broadly flat over the full year 2024 with underlying growth offsetting the impact of the U.S. writers and actors strikes which would delay some £80 million of revenue from 2024 to 2025. The second quarter would also see revenue decline year-on-year ITV said, but it pointed to a pipeline of shows with deliveries heavily weighted to the second hald of 2024 including “Hells Kitchen U.S.” for Fox, “A.C.A.B” for Netflix, “The Better Sister” and “Lazarus” for Prime Video, “Ludwig” and “Showtrial” for the BBC, “Sentinelles” for OCS and Canal+, “Love Island” in the U.K., U.S. and Australia, and “The Voice” in Australia and Germany

ITV said it remains on track to deliver at least £750 million of digital revenues by 2026.

Carolyn McCall, ITV chief executive, said: “Over the full year we expect ITV Studios revenues to be broadly flat. We have a strong pipeline of programs, good demand for our quality content as we increasingly diversify our customer base towards streamers and the phasing of deliveries is heavily weighted to the second half of the year, including “Hells Kitchen U.S., “The Better Sister,” “A.C.A.B,” “Showtrial” and “Ludwig.”

“ITVX continued to build on its strong first year and delivered double-digit growth in both digital viewing and digital advertising revenues in Q1 and we expect continued strong growth in both throughout the year.

“Total advertising revenue grew 3% in Q1, in line with guidance, with good momentum continuing into Q2 benefitting from the Euros in June. H1 TAR is expected to be up around 8%.

“Our group cost savings programs are on course to deliver £40 million of savings this year as previously guided. Overall we expect to continue to make good strategic progress and we remain on track to achieve our KPI targets for 2026.”