ITV: ad revenue ‘broadly flat’ for 9 months
ITV has forecast its total advertising revenue to be “broadly flat” for the nine months to the end of September after a 5% slump in the second quarter.
The UK’s biggest commercial broadcaster’s total advertising revenue (TAR), including ITV family NAR, ad-supported video-on-demand (AVOD) and sponsorship, was down 9% in May, 13% in June, and 5% in Q2 2022
The dip comes after ITV was unable to match a particularly strong second quarter last year, when the TV ad market was particularly buoyant and recovering from impacts of Covid-19. There was also a surge in advertiser demand last Summer due to ITV’s coverage for the Euro 2020 football championships.
Despite the fall in second quarter revenue, ITV is up 5% to £910m for the first half of 2022.
Total ITV revenue increased by 9% to £1.99bn, with external revenue up 8% at £1.68bn compared to the previous year, and both were above pre-pandemic revenues of 2019.
Total non-advertising revenue was also up 13% from 2021 to £1.08bn of which ITV Studios increased 16% to £927m.
Carolyn McCall, ITV chief executive, said: “Despite the tough comparators of last summer, when the Euros and a rebounding economy drove record advertising revenues, TAR is expected to be broadly flat in the nine months to the end of September.”
She added ITV was “mindful” of the macro economic uncertainty, but highlighted the football World Cup will fall in Q4 for the first time ever, which will be when new streaming service ITVX will launch.
McCall added both ITV Studios and Media & Entertainment divisions performed better in H1 2022 than expected with revenues in both up year-on-year leading to an increase of 8% in total external revenue.
She said ITV Studios revenue grew ahead of the wider market, high-end scripted hours grew 82% and revenue from streaming platforms grew “strongly”, now making up 19% of total revenues, up 3 percentage points.
McCall commented investment in Media & Entertainment content, data and technology was “already bearing fruit” as digital advertising revenue was up 20% because of “record levels of streaming” ITV Hub.
ITV said a “strengthened streaming offering” had helped drive its “best ever digital viewing” numbers with 814 million streams in H1 on ITV Hub, up 8% year-on-year.
Planet V, ITV’s self-service programmatic platform, now has 1,500 professional users compared to 1,200 registered by 31 March 2022.
Over H1 2022, Planet V gained 192 new digital-only advertisers to ITV.
2022 outlook
Compared to July 2021, total advertising revenue in July 2022 is expected to be down 9%, which is better than expected.
In August this is predicted to be an 18% decrease compared to the same period last year which is “broadly in line with expectations”.
However, in comparison with pre-pandemic levels, total advertising revenue in July 2022 and August 2022 is forecast to be up 17% and 5% respectively.
While ITV said it was too early to give a detailed forecast for September, the nine months to the end of September are anticipated to be up 8% on 2019 levels.
Looking further ahead
ITV also laid out “a clear vision for 2026”, to be a leader in UK streaming and an expanding global force in content.
The broadcaster will focus on on three priorities to deliver this:
1. Expand UK and global production business
2. Supercharge Streaming business
3. Optimise Broadcast business