British commercial broadcaster ITV has seen its mid-year revenue results drop by 3%, while the unscripted production arm of ITV America reported a 49% rise in interim revenues.
The This Time Next Year (pictured) broadcaster took a 3% decline in total external revenue as of June 30, which dipped to £1.46 billion (US$1.95 billion) from £1.5 billion from the year prior.
Unscripted producer ITV America, however, saw its interim revenues increase to £143 million from £96 million in the previous year, driven in part by new and returning formats including The First 48, Alone, World Hip Hop Star, Forged in Fire, American Grit and Big Star’s Little Star.
Production unit ITV Studios bolstered the UK broadcaster by posting a strong six-month period, with its total revenues swelling 7% to £697 million, including £42 million of currency benefits.
The studio unit’s investment in scripted content, meanwhile, has been tagged as one of the culprits in the company’s decline in revenue, with adjusted EBITA falling 9% to £110 million from £121 million in 2016. The broadcaster attributed that impact as one that was “expected” due to “ongoing investment in our U.S. scripted business and the fact that the prior year includes the full benefit of the four year license deal for The Voice of China,” said ITV executive chair Peter Bazalgette, in a statement.
ITV’s guidance for 2017 remains unchanged, with ITV Studios having already secured 85% of its expected full year revenues. That total is more than £100m more than this time last year, placing the commercial broadcaster on track to deliver “good organic revenue growth.”
Bazalgette noted that “ITV Studios’ adjusted EBITA will be broadly flat year-on-year, impacted by continued investment and the timing of program deliveries.
“We see opportunities to continue to invest in growing an even stronger and more resilient business,” he said. “The strength of our balance sheet and healthy cashflows allow us to do so while delivering sustainable returns to our shareholders.”
ITV most recently filled the vacated seat of chief executive, appointing former EasyJet CEO Carolyn McCall, becoming the first woman to run the broadcaster when she takes up the post in January 2018. She replaces Adam Crozier who departed the company last month.
“Carolyn brings a strong track record in media, experience of an international operation, clear strategic acumen and a reputation for delivering value to shareholders,” said Bazalgette.