ITV has published record profits in its ITV Studios division, thanks in part to the strong performance of its Northern titles.
Fool Me Once, made by Manchester’s Quay Street Productions was one of Netflix’s most-watched shows of all time; The Voice, filmed at Dock10 was the biggest franchise of the year, while Mr Bates was the biggest drama in the UK in 2024.
In total ITV profits were up 11% in 2024 to £542m, despite total group revenue falling 3% to £4.14bn. It said that profitability had increased due to increased margins in Media and Entertainment (ITVX) and £60m of cuts across the group.
ITV Studios also saw revenue fall 6%, even through profit rose 5% to £299m. The company said that the decrease in income was in line with guidance, as it was impacted by the 2023 US actors and writers strikes, a softer demand from free-to-air broadcasters and the phasing of deliveries year-on-year.
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“Three years ago we announced the second phase of our More than TV strategy and today’s results show our significant progress and success in navigating the rapidly changing media industry,” said Carolyn McCall, ITV Chief Executive.
“ITV Studios has delivered record profits this year, despite the one off impact of the writers and actors strike and a softer demand from free-to-air broadcasters, which reflects the strength, scale, diversification and creativity of ITV Studios production companies across the world.
“ITVX has been the UK’s fastest growing streaming platform over the last two years and coupled with our programmatic advertising platform, Planet V, has delivered significant growth in both digital viewing and revenues and is providing attractive returns.
“Our efficiency programme has delivered savings which have funded growth investments, offset inflation and improved our margins. The programme is ongoing and will continue to be viewer led – driving efficiencies and prioritising our investment to best reflect viewer dynamics and attract both mass reach audiences on linear and targetable audiences on ITVX.
“Our significant competitive advantages give us confidence that we will continue to deliver good growth in both ITV Studios and digital revenues, underpinned by the powerful reach and strong cash generation of Broadcast.
“And we are becoming a more resilient business with content production and digital now accounting for close to two thirds of our revenue. Our ongoing transformation ensures we are an adaptable and agile company, well positioned to deliver good profitable growth, strong cash generation and attractive returns to shareholders.”
On ITVX, streaming hours were up 12% and monthly active users were up 14% driven by the strong performance of programmes such as the Euros, Love Island and Until I Kill You.
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Looking forward it expected total advertising revenue would be lower than last year, given the Euros in June/July 2024, plus the introduction of tighter advertising restrictions on less healthy foods, which will come into force this October.
There was no mention in the report of the “early-stage talks” that were reported in January about merging its ITV Studios division with All3Media to create one of the largest production operations in the world.
In a call following the release of the results, McCall was questioned about the reports but wouldn’t comment further apart from to say that you would “expect a lot of speculation”.
