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ITV's actions increased after the British broadcaster said that the benefits before taxes have more than doubled last year, stimulated by record results in its television production division and cost reduction.
Total turnover dropped by 3% to 4.1 billion pounds Sterling in 2024, with growth in advertising revenues offset by a drop in its ITV studios activity, which was still recovering from the impact of Hollywood strikes in 2023, the company announced on Thursday.
The CEO of ITV, Carolyn McCall, said that cost reduction had saved savings while allowing the company to increase investments, compensate for higher costs and improve its margins. ITV said that the benefits before taxes jumped at 521 million pounds sterling, from 193 million pounds sterling the previous year and were committed to reducing the costs of 30 million pounds Sterling this year.
The actions of the company gained 6% at 73.80 Pence in the early afternoon on Thursday afternoon, pushing its gain in the last 12 months to 21% and giving it a market assessment of 2.7 billion pounds sterling.
McCall discussed the “advantages” of the existing model to have a television production arm integrated into its dissemination operations, but said that the board of directors “examined everything” in the midst of a potential sale of the division.
ITV had preliminary interviews with Redbird IMI, the investment group supported by Abu Dhabi who acquired Rival All3media last year for more than 1.1 billion pounds Sterling, according to several people familiar with the situation.
Several other contenders had also examined the company, said people, including CVC and Blackstone investment groups, and rivals such as Banijay, one of the largest production groups in Europe.
McCall refused to comment on sales talks and the potential rupture of the company, but said: “There are certainly to be integrated”.
“But I would say that each board, everywhere, must keep all the options open. And our board of directors is no different from that. We review everything and pass it regularly. »»
ITV has warned that advertising revenues this year would be struck by the planned introduction to the British government's restrictions on the marketing of less healthy foods from October.
McCall described politics – which prohibits advertisements for certain foods on television before 9 pm – as “imperfect” and unlikely to achieve its objectives of fighting infantile obesity. ITV will also take an additional cost of 7 million pounds sterling compared to an increase in national insurance contributions this year.
It predicted “good growth” this year for the two ITV studios – which makes emissions such as The voice And Rivals – and its digital operations, which represent together nearly two thirds of income.
ITV Studios is expected to provide income growth in 2025, but with a lower beneficiary margin than 2024, due to a lower proportion of high margin sales of its existing catalog and a higher proportion of scripted shows with lower margin.
ITV said that he would seek to generate income from digital projects, including a distribution and commercial partnership agreement with Youtube, to make more content available on the platform and to develop digital income sources beyond advertising.
