ITV PLC (LSE:ITV) (LON:ITV) said it plans to propose a final dividend for the full year as it is “encouraged” by the advertising outlook after a record June.
The broadcaster is skipping the interim dividend and instead eyeing a 3.3p final distribution “based on two-thirds of a notional full-year dividend of 5p”, assuming the economy continues to recover.
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As for advertising, July is expected to be up 68% and August up 17% to 20% compared to the same period in 2020. The group said it is too early to give a range for September given the current uncertainty but it should still be a positive figure.
Last month delivered the largest advertising revenues for the month of June in the history of ITV, driven by the easing of restrictions and the Euros football tournament.
Total advertising revenue for June and July 2021 is expected to be 16% higher than the same period in 2018 when ITV broadcast the football World Cup and series 4 of Love Island.
Further money is being poured into ITV Studios, which is currently performing “strongly”, on the back of strong demand for content, although there are still challenges in delivering programmes under Coronavirus (COVID-19) restrictions, particularly multi-location shoots.
The production arm has been working on new and returning programme commissions in UK and internationally, including Love Island in the UK, Spain, Germany and Netherlands and Line of Duty, Pembrokeshire Murders and Unforgotten in the UK.
In the six months to 30 June, total external revenue climbed 27% to £1.5bn, with ITV Studios total revenue up 26% at £798mln.
Total media & entertainment (M&E) revenue jumped 25% to £1bn, which was 4% higher than 2019 levels. Ad revenue rose 29% and video on demand advertising was up 55%.
Adjusted group underlying earnings (EBITA) rocketed 98% to £327mln thanks to the strong recovery in the advertising market, the restart of productions and tight cost control delivering £21mln of savings.