ITV predicts 2% drop in Q4 ad revenues
ITV is expecting a 2% drop in advertising revenues in the final quarter of the year, despite performing better than expected in the third quarter.
According to the company's trading update this morning (14 November), net advertising revenues (NAR) were up 1% in the third quarter after September brought 7% growth instead of the flat performance the company had expected back in July.
Its pessimism about the fourth quarter is focused on December, which it expects to be down around 10% due to a tough comparative and a soft retail sector.
However, it expects to finish the year ahead of the market, despite lagging it slightly in the first half.
ITV did not provide a third-quarter revenue figure, but for the nine months to 30 September, its broadcasting and online division made £1.29bn, up 3% year on year.
Overall revenues, including its production division, were up 4% to £1.52bn.
Adam Crozier, ITV chief executive, expressed caution about 2012, saying: "Quarterly revenue trends are likely to follow a different pattern to 2011 with tough comparatives continuing into the first quarter, before easing from the second quarter onwards, helped by Euro 2012".
Crozier, who is pursuing a five-year transformation plan to make ITV less reliant on cyclical ad revenues, announced in August 2010, highlighted the company’s improved financial strength.
He said: "We are on track to be net cash positive at year end. This is a substantial improvement given that our net debt stood at £612m at the beginning of 2010."
ITV's net advertising revenues comprise TV revenues but not online ad revenues, and the company does not break out the latter.
Follow Daniel Farey-Jones on Twitter @danfareyjones
This article was first published on mediaweek.co.uk
- Senior Planner, Direct Marketing /CRM Agency, London Direct Recruitment £70,000-100,000, London (Greater)
- Account Executive - Partnership Marketing Stonor £18,000 to £20,000, London (Central), London (Greater) / London (North), London (Greater) / London (West), London (Gr...
- Account Manager/Senior Account Manager - Integrated - Herts Stonor £28,000 to £35,000 dependent on experience , Bedfordshire / Hertfordshire / London (North), London (Greater)
- Midweight Copywriter (Digital) createselect Up to £38K pa, depending on experience, London (Central), London (Greater)
- Digital Marketing Executive - Healthcare GoodEgg Digital £24k + Great Benefits, England
- ASA receives 240 complaints about Sainsbury's Christmas ad
- John Lewis Christmas ad gets three times more views than Sainsbury's in first 24 hours
- Watch: The Post Office's first Christmas TV campaign in five years
- Watch: Ant and Dec star in Morrisons' festive campaign
- DigitasLBi is on hunt for new media leader as Ling exits
- Samsung launches first Christmas TV campaign in the UK