Britain's ITV opens new tab reported a better-than-expected 10% rise in total advertising revenue in its first half on Thursday after strong demand during the Euro 2024 soccer championship, but its shares fell as it forecast a broadly flat ad revenue in the third quarter.
Chief Executive Carolyn McCall said the performance of ITV's digital advertising business continued to improve in the six months to June 30. A 17% increase in digital ad revenue contributed to the rise in total ad revenue: "This was driven by strong viewing across our broadcast channels and (streaming platform) ITVX, with a very successful Euros, a year-on year-increase in viewing of Love Island and a slate of great dramas," she said.
Total advertising revenue rose 17% in the second quarter, ahead of guidance of 12%. However, it was forecast to be "broadly flat" in the third quarter, as the same period last year included the Rugby World Cup. Shares in ITV, up 29% so far this year, traded down 5%.
McCall referred to the state of the ad market: "The ad market is definitely very firm. There is no question we had a good lift from the Euros in June, and only in a small part of July," she analyzed.
ITV showed England's semi-final victory against the Netherlands on July 10, which just slipped into the third quarter. The match was watched by a peak of 21.6 million viewers. England lost the final to Spain a few days later.
The growth in total ad revenue was offset by a decline in production business ITV Studios, which felt the impact of last year's U.S writers' and actors' strike. ITV said some key shows had changed to executive productions rather than co-productions, which would result in full-year revenue for the unit declining by single digits rather than the flat outcome previously expected. The change would not impact profit, it said.
FInally, McCall said ITV was confident of delivering increased adjusted earnings in the full year. First-half adjusted earnings rose 40% to 213 million pounds, on total revenue down 3% at 1.903 billion pounds.
