ITV’s revenue fell 8% in the first nine months of the year to £2.7bn, driven by a 20% decline at ITV Studios. Here the lingering impact of last year’s US writers’ and actors’ strike weighed on revenues in the third quarter.
A busy content slate in the fourth quarter is expected to limit the full-year revenue decline in Studios to a mid-single digit range. This uplift in content as well as cost cuts, means Studios is “on track” to deliver record underlying cash profit (EBITA) over the full year.
Media and Entertainment revenue was up 4%, with Total Advertising Revenue (TAR) growth of 6% being helped by strong progress in digital as streaming hours were up 14%. As expected however, things slowed over the third quarter, where TAR was flat.
ITV said the absence of the Rugby World Cup and weak bookings ahead of the UK budget held back fourth quarter activity. As such full-year TAR is expected to grow by just 2.5%.
The shares fell 7.9% early trading.
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