ITV’s profits have soared on the strength of a World Cup advertising boom and the sale of more of its programmes online and to other broadcasters.
Advertising leapt 13 per cent in the last three months despite England’s poor showing in the football tournament and some of the biggest games being shown on the BBC. Half-year pre-tax profits jumped 40 per cent to £250 million, with revenues climbing 7 per cent to £1.22 billion.
Programme-making arm ITV Studios, which also makes shows for other broadcasters such as Rev for the BBC and Friday Night Dinner for Channel 4, increased sales outside ITV by 27 per cent. Chief executive Adam Crozier said: “The economic recovery is leading to an improved advertising market.”
Crozier expects the next six months to be at least as good and declared: “We’re confident of our strong autumn schedule with both new and returning drama and entertainment.” He highlighted the forthcoming series of Downton Abbey and the return of Cheryl Cole and Simon Cowell on X Factor.
Other new dramas include Cilla Black biopic Cilla, starring Sheridan Smith, Grantchester about a crime-solving vicar, and The Great Fire, inspired by the blaze that hit London in 1666.
Crozier has also struck a deal with YouTube to launch 18 multi-channel networks, showing ITV video content.
Despite the strong financial performance, ITV’s share of commercial TV viewing declined and Crozier admitted the performance of digital channels ITV2 and ITV3 was “disappointing” — partly because of the launch of a rival drama channel from UKTV.
Crozier, boss since 2010, has improved ITV’s fortunes after it made a £2.7 billion loss during the 2008 recession. He promised to hike the dividend by 20 per cent for each of the next three years, which will increase City speculation about a possible takeover after Virgin Media owner Liberty Global bought a 6.4 per cent stake in ITV last month.
