ITV has announced an 11% growth in TV advertising revenue in their third quarter, and is expecting a strong finish for the final quarter of the year. More specifically, ITV reported that TV ad revenue grew 8% in October with a forecasted 4% growth for November and 1% growth for December, excluding TV sponsorship revenues.
Further, the broadcaster said that its investment in the production facilities arm, ITV Studios, has paid off in the third quarter, with revenues being up 11% to £55m. ITV Studios However, ITV has noted that the studio’s growth is largely coming from buying firms such as Graham Norton's So Television, Big Talk and Gurney, the US producer behind reality shows including Duck Dynasty.
ITV reported a 3% growth in broadcast and online revenues, driven by a 17% increase in online, pay and interactive revenues. Requests to its VOD player, ITV player, grew by 16% to £401m and overall revenues grew by 6% to £1.66bn from £1573m in 2012. Furthermore, ITV plans to increase its cost savings from £20m to £25m this year.
“We continue to make good progress with our strategy of growing and strengthening ITV both creatively and commercially, and all parts of the business are performing well. Total external revenues rose 6%, driven by strong growth in Online, Pay & Interactive and in ITV Studios. ITV is now a stronger and more balanced business and as we move into 2014 we will continue to see growth across the company. We expect good growth in ITV Studios, primarily driven by our recent acquisitions. The television advertising market is showing signs of improvement, which will benefit the core Broadcast business, and we expect to deliver double digit revenue growth in Online, Pay & Interactive,” said Adam Crozier, ITV plc Chief Executive.
DTG Staff | 19.11.2013