ITV PLC (LSE:ITV) reported broadly flat revenue as growth in ITV Studios and Media & Entertainment (M&E) offset a decline in advertising revenue.
Carolyn McCall, chief executive, said: ”ITV continues to make good strategic progress despite the challenging macro environment which is impacting the advertising market and also the demand for content from free-to-air broadcasters in the UK and internationally.”
The free-to-air broadcaster said in the nine months to 30 September 2023 total revenue rose 1% at £2.98 billion from £2.95 billion the year before.
Total ITV Studios revenue rose 9% to £1.52 billion from £1.39 billion a year ago while M&E revenue was down 7% at £1.46 billion from £1.56 billion, driven by a 7% drop in total advertising revenue (TAR).
Digital advertising revenue remained strong, up 25% at £283 million, ITV said.
ITVX continued to perform strongly with total digital revenue up 23% and total streaming hours up 27% to the end of September, with monthly active users continuing to grow in line with the firm’s expectations.
Looking ahead, ITV expects ITV Studios to deliver total organic revenue growth of at least 5% per annum on average to 2026 and to grow ahead of the market.
It expects full-year growth of 3% in total Studios revenue, following 19% growth in 2022, with the fourth quarter impacted by the phasing of deliveries in 2023 which are weighted to the first nine months.
Media & Entertainment is expected to deliver at least £750 million of digital revenues by 2026 although the advertising market remains challenging and full-year TAR is likely to be down around 8% versus 2022.
ITV said it continues to review its cost base, in addition to the current £50 million target to 2026.