UK broadcaster ITV has reported its interim management statement, which shows an increase of revenues and a strong performance from its production company ITV Studios.
The statement, which covers a nine-month period ending on September 30, includes total external revenues up by 4% from last year to £1,573,000,000 (US $2.5 billion).
The non-Net Advertising Revenue (NAR) revenues are up 15% to £730 million, driven by ITV Studios’ strong showing. According to the report, ITV Studios’ total revenues are up 20% to £498 million.
ITV’s chief executive Adam Crozier credits the broadcaster’s strategy of investing in the creative pipeline for ITV Studios’ performance.
“We expect ITV Studios to report over £100 million of profit in 2012, and the number of new commissions and recommissions already secured for 2013 gives us confidence that there will continue to be good underlying growth in the Studios business,” he said.
As for ITV’s group of channels, including ITV1, ITV2, ITV3, and ITV4, the report cited a flat NAR over the first nine months.
ITV’s channels’ share of viewing (SOV) was down 3%, meanwhile, with digital channels up 3% for the 10 months to end of October.
“We have made further progress in reshaping and rebalancing ITV to ensure the business is more robust both commercially and creatively,” said Crozier. “The momentum we are building in our non-NAR revenues has helped grow group revenues up 4% to £1,573 million in difficult economic conditions and with a broadly flat television advertising market.”
“We have maintained our focus on cash and costs. Our financial position is strong with positive net cash of £90 million and we will deliver around £30 million of cost savings this year, £10 million ahead of our original target,” he added.