ITV (ITV) Q3 2024 TU earnings summary

Executive summary

• Group revenue for the nine months to 30 September 2024 declined 8% year-over-year to £2,741 million, with ITV Studios revenue down 20% due to US writers' and actors' strikes and delivery phasing.

• ITV Studios is on track for record adjusted EBITA in FY 2024, driven by efficiency gains and a strong Q4 production slate.

• ITVX streaming hours grew 14% and digital advertising revenue rose 15% year-over-year, supporting overall digital revenue growth of 11%.

• Total advertising revenue (TAR) was flat in Q3 but is expected to rise 2.5% for the full year, despite a projected 6-7% decline in Q4 due to tough comparatives and UK budget uncertainty.

• Additional £20 million in net cost savings announced for 2024, on top of previously announced £40 million in savings.

Financial highlights

• Group external revenue fell 8% to £2,321 million for the nine months to 30 September 2024.

• ITV Studios revenue dropped 20% to £1,217 million, with organic revenue down 19% at constant currency.

• Media & Entertainment (M&E) revenue increased 4% to £1,524 million, with TAR up 6% and digital advertising revenue up 15%.

• Total digital revenue reached £376 million, up 11% year-over-year.

• Net debt stood at £437 million as of 30 September 2024, with liquidity of £1,326 million.

Outlook and guidance

• ITV Studios expects record adjusted EBITA for FY 2024, with margins within the 13-15% target range.

• Full-year Studios revenue expected to decline mid-single digits, but excluding strike impacts, only marginally down year-over-year.

• TAR forecast to rise 2.5% for 2024, with Q4 down 6-7% due to Rugby World Cup comparatives and UK budget uncertainty.

• ITV Studios anticipates 5% average annual organic revenue growth from 2021 to 2026.

• Digital revenues on track to reach at least £750 million by 2026.