ITV reveals slump in ad revenues and predicts tougher times ahead
ITV has reported a 10% drop in advertising revenues in the first three months of this year, and said it expected the situation to get even tougher in the coming months.
The company warned of a “challenging” outlook for ad spending overall as businesses cut back their marketing budgets during an economic slowdown and cost of living crisis. The broadcaster predicting a further drop of 12% in ad revenues in the three months to the end of June, including a 14% fall in June alone.
However, ITV’s chief executive, Carolyn McCall, said the decline in the first quarter of the year was smaller than that experienced in the wider TV advertising market.
She added that the group pulled in large streaming audiences for exclusive series such as Nolly and The Twelve at its online video-on-demand service ITVX, which launched just over a year ago.
ITV, which also broadcasts I’m A Celebrity… Get Me Out Of Here! and Love Island, said ITVX had sustained its strong launch, with digital revenues up 29% and streaming hours 49% higher in the first three months of this year. Digital ad revenues are forecast to be up more than 20% in the second quarter.
Overall media and entertainment revenue at the broadcaster fell 9% to £495m between January and March – but within this total, digital advertising revenue rose 30% to £87m. Revenues from ITV Studios were flat at £457m.
McCall said live “simulcast” viewing of ITV’s biggest shows and sports events – including Love Island and the FA Cup – had been popular with streaming audiences.
She added: “We are looking forward to the third quarter with Love Island and the Rugby World Cup set to draw large broadcast and streaming audiences. ITV is successfully executing phase two of its More Than TV strategy, despite the
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