ITV PLC has released its interim results for the six months ended 30 June 2024. The report highlights a significant 40% increase in group adjusted EBITA, despite a 2% decrease in external revenue. ITV Studios saw a 13% decrease in revenue, as expected, due to the phasing of productions and US writers' and actors' strikes in 2023. However, adjusted EBITA for ITV Studios grew by 5%, driven by higher margin catalogue sales and cost savings. The Media & Entertainment segment's adjusted EBITA grew by 230%, with total advertising revenue up 10%.
ITV Chief Executive, Carolyn McCall, expressed confidence in delivering increased adjusted EBITA for the year and being on track to achieve the 2026 KPI targets. She highlighted the strong performance of ITV Studios, expecting record adjusted EBITA for the full year, driven by higher margin catalogue sales and efficiency actions. The digital advertising business also showed strength, with a 17% increase in revenue, contributing to a 10% increase in total advertising revenue.
The company is focused on improving efficiency and simplifying operations, aiming to deliver £40 million of incremental in-year savings in 2024. ITV Studios is expected to deliver record profits for the full year, despite the impact of the 2023 US writers' and actors' strikes and lower demand from European free-to-air broadcasters. The company remains on track to deliver total organic revenue growth of 5% on average per annum from 2021 to 2026, ahead of the market, and at a margin of 13 to 15%.
In the Media & Entertainment segment, ITVX is expected to continue performing strongly in the second half of the year, with further improvements in content, product, distribution, marketing, and monetization. The company is on track to deliver at least £750 million of digital revenues in 2026.
Financially, total revenue was down 3% at £1,903 million, with total external revenue down 2% at £1,599 million. However, group adjusted EBITA was up 40% at £213 million, reflecting the operational gearing of Media & Entertainment, higher margin in ITV Studios, and delivery of £23 million of cost savings. Adjusted EPS was up 43% at 3.3p.
Overall, ITV PLC's half-year report reflects a mixed performance, with challenges in certain segments offset by strong growth in others. The company remains focused on delivering its financial targets and driving efficiency across its operations.