ITV’S HALF-YEAR REPORT REVEALS EARNINGS DROP AMID THE PANDEMIC

U.K.broadcaster ITV Hub’s 2020 half-year earnings have expectedly declined due to the effects of the ongoing coronavirus pandemic. “While our two main sources of revenue, production and advertising were down significantly in the first half of the year and the outlook remains uncertain, today we are seeing an upward trajectory with productions restarting and advertisers returning to take advantage of our highly effective mass reach and addressable advertising platform, in a brand-safe environment,” ITV CEO, Carolyn McCall said. 

Total broadcast revenue in the last six months has declined 17% to £824 million (USD 1.08 billion) from 2019’s USD 1.3 billion. Similarly, there was a 17% decline in total ITV Studios revenues to £630 million ($830 million) from £758 million (USD 999 million). Advertising revenue for a six-month duration to the end of June dipped to £671 million (USD883 million) from £849 million ($1.1 billion) for the period last year. Overall, ad revenue fell by 43% in the second quarter and by 21% from the period in 2019. Despite an increase in overall viewing to the ITV family of channels, there was a 17% decline in total Broadcast revenue and a 50% fall in adjusted operating profits. The broadcaster said it was beginning to see an improvement for July and August, through the use of FMCG and retail, publishing and broadcasting, cars, and interior furnishing categories beginning to spend more.

Around 300 staff remain in furlough. A total of 390,000 subscribers enhanced ITV Hub, and though BritBox experinced alot of growth,  there weren’t many numbers. Britbox is now available to 60% of UK streaming households instead of subscribing. and the international rollout is “on track” with Australia due to launch in Q4 and it intends to expand the service in up to 25 countries worldwide. “There are encouraging signs with a return of production and the growth of direct-to-consumer services. The BritBox launch in other markets will provide much-needed revenue, The pandemic has underlined the importance of streaming and connecting with audiences in new ways. This is something that ITV and other broadcasters need to accelerate.”

Out of 230 productions that were impacted or paused by the lockdown, around 70% have been delivered or are now back in production. McCall added that the company is now “seeing an upward trajectory with productions restarting and advertisers returning”, while viewership saw a 4% uptick during the UK’s period of lockdown. Online watching was up 13%. The companies plan to save £60m is still in the works, with the company reporting that it has to date realized slightly more than £50m of the target, while programming budgets have been slashed by £100m. According to McCall the quarter “has been one of the most challenging times in the history of ITV” but said the crisis “helped demonstrate the enduring value of ITV as a public service broadcaster.”