ITV (ITV) H2 2024 earnings summary

Executive summary

• Achieved double-digit earnings and adjusted EBITA growth, with record profits in Studios and strong strategic execution despite a 3% decline in total group revenue year-over-year.

• Adjusted EPS rose 23% to 9.6p; full-year dividend maintained at 5p, totaling £190 million.

• Digital viewing and revenue grew 12%, digital ad revenue up 15%, with ITVX investment payback expected by end of 2025, ahead of plan.

• Delivered £60 million in non-content savings in 2024, exceeding targets, and targeting an additional £30 million in cost savings for 2025.

• Business is leaner and more agile, with strong cash generation and well positioned for future growth.

Financial highlights

• Group revenue was £4,140 million, down 3% year-over-year; total advertising revenue rose 2% to £1,820 million.

• Digital revenue grew 12% to £556 million; group adjusted EBITA increased 11% to £542 million.

• Studios revenue declined 6% to £2,038 million, but adjusted EBITA rose 5% to £299 million, with margin improving to 14.7%.

• M&E revenue up 1% to £2,102 million; adjusted EBITA up 22% to £250 million, margin up to 11.9%.

• Net debt at year-end was £431 million; net debt/EBITDA leverage at 0.7x.

Outlook and guidance

• Studios expected to deliver good revenue and profit growth in 2025, weighted to H2 as scripted market recovers; margin to be within 13-15% target.

• M&E digital advertising revenue expected to continue strong growth; TAR for first four months of 2025 to be flat year-over-year, with full-year impacted by tough comparatives and new ad restrictions.

• Content costs in 2025 projected at £1.25 billion, down £15 million year-over-year; £30 million in new cost savings planned.

• Profit-to-cash conversion expected to average 80% (2023–2025); capex around £65 million.

• Adjusted effective tax rate expected around 27% medium-term; finance costs to be £40 million.