ITV: Digital expansion delivers growth
ITV has reported strong profit growth in 2024, driven by strategic execution and continued digital transformation as the firm successfully navigated industry challenges.
Record profits in ITV studios, strong digital performance on ITVX, and cost efficiencies drove higher margins and profitability.
Carolyn McCall, chief executive, said that ITV Studios, “coupled with (ITV’s) programmatic advertising platform, Planet V, has delivered significant growth in both digital viewing and revenues and is providing attractive returns.”
Its ITV Studios division also delivered a five per cent rise in earnings, to £299m, despite facing challenges from the US writers’ and actors’ strikes softening demand from broadcasters.
The arm benefited from strong format and catalogue sales, with hits like “Fool Me Once” on Netflix, and “Love Island USA”, the number one reality series in the US.
ITVX also continued its strong momentum, with digital viewing up 12 per cent, and digital ad revenue up 15 per cent.
Looking ahead, the television titan expects to fully recoup its ITVX investment, two years ahead of schedule.
McCall said: “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.”
The board proposed a final dividend of 3.3p per share, bringing the full year dividend to 5p, totalling to around £245m.