Here is a summary of the key points from the trading update for ITV PLC for the third quarter of 2024
Group revenue was down 8% year-on-year, with a decline in ITV Studios revenue offsetting growth in total advertising revenue.
ITV Studios revenue was impacted by production delivery phasing, the US writers and actors strike, and lower demand from European free-to-air broadcasters, resulting in a 20% decrease in revenue for the first nine months of 2024. However, it is on track to deliver record adjusted <mark style="background-color:yellow">EBIT</mark>A for the full year.
ITVX, the companys streaming platform, showed strong performance with double-digit growth in streaming hours and digital advertising revenue.
Total advertising revenue was flat in Q3 as expected, and is expected to be up around 2.5% for the full year, with Q4 expected to be down due to tough comparatives and uncertainty leading up to the UK budget.
The company announced additional net cost savings of £20 million for 2024, including reductions in content and non-content costs.
M&E revenue was up 4% for the nine-month period, driven by a 6% increase in TAR and 15% growth in digital advertising revenue.
ITV maintained its strong position in linear television, with a 32.3% share of commercial viewing on its linear TV channels.
The company expects total content costs for 2024 to be around £1,265 million, £10 million lower than previously guided.
ITV Studios is expected to deliver total organic revenue growth of 5% on average per annum from 2021 to 2026, ahead of the market, with a margin of 13 to 15%.
Net debt as of September 30, 2024, was £437 million, and the company has good access to liquidity.
The company maintains its forward-looking statements but notes that actual results may differ materially due to various factors, including economic conditions, changes in the advertising market, regulation, and demand for global content.