ITV has recorded a 32% slump in profits following a steep downturn in broadcast advertising, despite the success of shows such as the Mr Bates v The Post Office drama, which garnered 9.2 million viewers.
The broadcaster revealed it had suffered a 15% decline in linear advertising, with pre-tax profits falling 61% to £193 million over the year, compared with £501 million in 2022.
Adjusted profit before tax fell even more sharply by 41% to £396 million.Total revenue was also down 2% and external revenue was down 3% at £3,624 million. However, revenue for ITV Studios grew 4%.
ITV’s chief executive Carolyn McCall blamed the dip in advertising on a “challenging macro environment” for having to reduce shows last year.
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Speaking about this year’s results, McCall highlighted how the broadcaster is implementing a cost saving programme: “Our existing cost saving programme targeting £150 million between 2019 and 2026 has delivered £130 million of annualised savings to date”.
She also said the broadcaster is undertaking a “strategic restructuring and efficiency programme” across the group in order to reshape the cost based and enhance profitability.
She added that the broadcaster was on track for its target of saving the full £150 million by 2025.
She added that: “2023 was the year of peak investment for streaming, which together with the successful execution of our strategy and the efficiencies delivered to date have made ITV more robust.”
McCall also highlighted that ITV studios would continue to be impacted by the US writers and actors strikes, which she said would delay around £80 million of revenue from 2024 to 2025.
ITV is not the only broadcaster to suffer from reduced advertising, Channel 4 recently unveiled hefty job cutbacks.
In November last year, Channel 4 CEO Alex Mahon described it as the worst financial situation faced since 2008.
