ITV predicts 7% drop in fourth quarter ad revenues

ITV is expecting advertising revenue falls in the wake of the Brexit vote to intensify in the fourth quarter, according to its trading update this morning.

ITV: October ad revenue down 11% on last year, when there was Rugby World Cup coverage
ITV: October ad revenue down 11% on last year, when there was Rugby World Cup coverage

The UK's biggest broadcaster reported Q3 ad revenue had fallen by 4% and October was down by 11%, though last year’s figure was boosted by the Rugby World Cup. 

For the fourth quarter it expects a 7% drop which will translate into a full-year decline of 3%, though ITV believes this will outperform the market. 

Last month Sky reported its Q3 ad revenues had fallen by 3% in the three months after the UK's vote to leave the European Union in June.

Chief executive Adam Crozier said: "In recent weeks the political and economic uncertainty has increased and we are currently seeing more cautious behaviour by advertisers."

Ad revenues recorded in the first nine months of the year came in at £1.21bn, down 1% year-on-year. 

However, with 15% growth in other revenues including its production arm, overall revenues increased by 5% to £2.16bn.

Crozier added: "Our strategy of rebalancing and strengthening ITV continues to deliver." 

ITV said it is "on track" to delivering £25m in savings as it announced last month. ITV is cutting 120 jobs, which is about 3% of its workforce, amid expectations of 2017 being a difficult year.

Ian Whittaker, analyst at Liberum Capital, said ITV's trading update today was in line with market expectations.

He said: "Q3 revenues look to have fallen 6.4% year on year with the growth in Online, Pay and Interactive slowing down to the mid-teens level from 26% growth in H1 – however, we are not worried about this as we think the "quality" parts of online and interactive are continuing to grow well, it is more an effect of lumpy interactive revenues and the drop-off of the Rugby World Cup boost last Q3."

Topics

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Share

1 Grey London changes name to Valenstein & Fatt to promote diversity and tolerance

Grey London is making a statement against a recent surge in racism and nationalism by changing its name to Valenstein & Fatt, with the surnames of its two Jewish founders appearing above the agency's doors for 100 days.

Why Cosabella replaced its agency with AI and will never go back to humans
Shares0
Share

1 Why Cosabella replaced its agency with AI and will never go back to humans

In October, lingerie retailer Cosabella replaced its digital agency with an AI platform named "Albert". Since then it has more than tripled its ROI and increased its customer base by 30%.

Just published

More