ITV PLC (LSE:ITV) will report full-year results for the first time since announcing a boom in viewership in January on the back of its new ITVX streaming platform.
The FTSE 250-listed broadcaster announced a 55% increase in the number of hours streamed across its websites between December and January, following the release of its new streaming service - although the World Cup did have a large part to play.
ITVX and the potential it offers to drive "materially" better monetization in the medium term was the key reason that JPMorgan recently flagged the shares as "cheap", backed up by the recent Hollywood-linked interest in the ITV Studios production arm.
Chief executive Carolyn McCall's aim of doubling digital revenues to £750mln by 2026 appears to be going to plan, said Hargreaves Lansdown analyst Susannah Streeter, given the boost, which still sat at 29% without World Cup related views.
As shown by the numbers from Warner Bros and Disney in recent weeks, competition in the subscription streaming space is fierce, and persuading consumers to shell out for another monthly fee is a hard sell in the current climate.
While ITV previously lowered ad revenue guidance in November, expecting it to be down 1-1.5% for the year compared to a record previous year, it predicted total revenue growth will exceed pre-pandemic levels, with McCall claiming ITVX would “supercharge” its streaming business.