ITV PLC reported a slip in 2022 full-year profits and warned total advertising revenue (TAR) will continue to suffer because of the uncertain macroeconomic environment.
The FTSE 250-listed broadcaster said underlying profit (adjusted EBITA) fell 12% to £717mln last year, which primarily reflected planned investment in its Media & Entertainment (M&E) arm, according to a statement.
Total group revenue, however, grew 7% to £7.3bn for the year ended 31 December 2022.
Revenues from ITV Studios were up 19% to £2.09bn, while income from M&E was down 1% to £2.2bn, driven by a 1% decline in TAR.
"2022 was a year of significant strategic progress and ITV delivered a robust set of financial results,” said chief executive Carolyn McCall.
The percentage of total revenue derived from streaming grew 22% from 13%, with the target for 2026 increasing to 30% from 25%, a statement said.
In the first two months since ITVX’s launch, its new streaming platform attracted 1.5mln new registrations, saw streaming hours grow 69% and streaming hours of lighter viewers grow 94% compared to the same period in the prior year on ITV’s streaming platform.
With the planned enhancement of ITVX’s product, content and distribution, ITV said it remains committed to at least delivering £750mln in digital revenues by 2026.
However, the company said the outlook for total advertising revenues is challenging given the current macroeconomic environment with TAR expected to be down 11% in the first quarter compared to last year and down between 10% and 15% in April.
"We enter 2023 with strong momentum and are on track to deliver all our 2026 KPI targets despite a continuing uncertain macro environment. ITV's balance sheet is robust enabling us to continue to invest to support our strategy and deliver returns to shareholders,” McCall said.
Net debt increased to £623mln from £414mln, and the group proposed a final dividend of 3.3p, in line with its dividend policy.