ITV’s profits surged in 2024, largely thanks to exceptional earnings from its production division, ITV Studios. This success was bolstered by popular shows such as “Mr Bates vs the Post Office,” the Jilly Cooper adaptation “Rivals,” and “Fool Me Once.” Despite a 3% drop in revenues to £4.1 billion compared to the previous year, the company saw an 11% increase in adjusted profits to £542 million and more than doubled its profit before tax, hitting £521 million.
The broadcaster is strategically shifting its focus from traditional TV channels to online streaming, aiming to reduce its dependency on unpredictable broadcast revenues. The growth of ITV Studios has been pivotal in this strategy, surpassing the earnings from advertising and its streaming app, ITV X. The production arm produces shows not only for ITV but also for competitors, benefiting from the high demand for premium dramas. However, the 2024 sales were impacted by writers’ strikes in the US the previous year.
Carolyn McCall, ITV’s CEO, expressed confidence in the company’s competitive advantages, predicting sustained growth in both ITV Studios and digital revenues. She also noted the company’s progress in becoming more resilient, with content production and digital now making up nearly two-thirds of its revenue. Nonetheless, McCall faces challenges in convincing investors, with the company’s share price experiencing significant declines since July. Despite potential takeover interest from various parties, including CVC Capital Partners and TF1, ITV has not announced any discussions regarding a potential takeover or restructuring.
Looking forward to 2025, ITV expects its studios to deliver revenue growth, although with reduced profit margins. New shows set for release include the second series of “Rivals” for Disney+, “Run Away” for Netflix, and the second series of the police thriller “After the Flood” for its main channel.
In terms of advertising revenues, which predominantly come from broadcast channels, ITV anticipates a decline in 2025 compared to 2024, a year marked by high advertising investment for events like Euro 2024. Additionally, forthcoming restrictions on adverts for less healthy foods may further impact ad sales. Despite these challenges, ITV maintained its dividend for 2024 at 5p per share, equating to a £190 million distribution to shareholders, consistent with the previous year.
Source: https://www.theguardian.com/business/2025/mar/06/itv-profits-more-than-double-as-production-arm-reports-record-earnings
