ITV PLC released its Q1 2024 trading update, reporting a 7% decrease in total revenue at £887 million, with ITV Studios revenue down 16% due to the phasing of deliveries and the expected impact of the US writers' and actors' strike. However, ITVX saw a 16% growth in streaming hours and a 14% growth in digital advertising revenues. Total advertising revenue was up 3% in Q1, with strong momentum expected into Q2, and the H1 advertising revenue expected to be up around 8%.
ITV Chief Executive, Carolyn McCall, highlighted the company's successful execution of its strategy, with a strong pipeline of programs heavily weighted to the second half of the year. The ITV Pension scheme is now in surplus, removing a significant historic drag on free cash.
ITV Studios delivered a wide range of new and returning programs and formats in the UK and internationally, while Media & Entertainment (M&E) revenue was up 2% at £505 million, with digital advertising revenue up 14%. ITVX's strong performance continued in Q1, with total streaming hours up 16% and monthly active users growing as expected.
Looking ahead, ITV remains on track to deliver its 2026 KPI targets and expects to deliver a total of £40 million of cost savings in 2024. ITV Studios total revenues are expected to be broadly flat over the full year 2024, with good underlying growth offsetting the impact of the US writers and actors strikes. The company is confident in its ability to continue growing its market share to 2026 driven by its scale and diversification by customer base towards streamers.
Overall, ITV remains focused on making good strategic progress and achieving its KPI targets for 2026.