ITV revenue rises 13% in Q1 despite ad income dip

ITV has predicted it will outperform the TV ad market in 2012, as it reported external revenue of £565m in the first quarter of 2012, up 13% year on year despite a slight decline in TV ad revenue.

Adam Crozier: chief executive of ITV
Adam Crozier: chief executive of ITV

According to an interim management statement, ITV’s net ad revenue (NAR) was £362m in the first quarter of 2012, down 1% year on year, which ITV said was in line with the market.

When taken together, all ITV's non-NAR revenue (including production revenue, sponsorship, online ad revenue, pay TV income) was £290m in the first three months of 2012, up 43% year on year.

ITV's broadcasting and online segment, which includes all forms of ad revenue, reported revenue of £440m in Q1, up 1% year on year. ITV's production arm ITV Studios reported revenue of £212, up 61% year on year.

Although total revenue was £652m, up 15% year on year, this included £87m of internal supply. External revenue was £565m during the quarter, up 13% year on year.

Although share of viewing for the ITV Family of channels was down by 2% in the four months to the end of April, ITV said it remains confident in its schedule with the Euro 2012 international football tournament in June and a "strong autumn line-up".

Adam Crozier joined as chief executive of ITV in April 2010 and has launched a five-year transformation plan in a bid to diversify the businesses and reduce its dependence on the TV spot market in August 2010.

Crozier said: "We continue to push forward with our five-year Transformation Plan with external revenues up 13% in the first quarter of the year – driven by an increase in non-advertising revenues – in line with our strategy of rebalancing and growing the business.

"ITV Family NAR started the year better than we anticipated but is nevertheless down 1% in Q1. While the underlying television advertising market continues to be broadly flat, we expect ITV's ad revenue to be up around 3% in H1, helped by Euro 2012."

Crozier said he expects ITV to outperform the TV ad market in the first half of 2012 and for the year as a whole.

ITV’s estimate that its spot ad revenue will rise by 3% in the first half is based on the assumption that ITV Family NAR was down 1% in Q1, broadly flat in April and will rise 6% in May and up between 12% and 17% in June.

Follow Maisie McCabe on Twitter @MaisieMcCabe


Cannes Offer: 12 weeks' online access from just £12

Subscribe to Campaign before the end of Cannes Lions and save up to 71%


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
Job description: Digital marketing executive

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).

Just published