ITV plc interim results for six months ended 30 June 2006
The company says "[Public Service Broadcasting] commitments represent almost a third of ITV1’s schedule but only 11% of ITV1’s impacts. Currently our ITV1 PSB slots are targeted by competitors with commercially attractive programming. We believe that there are opportunities in the medium term to modernise our PSB commitments including, for example, adjusting the balance of children’s programming across ITV1 and our newly launched CITV channel; available to 90% of families with children."
ITV plc revenue up 3% to £1,077 million
Financial Highlights
* Revenues outside ITV1 net advertising revenue (NAR) up 25% to £423 million
* Operating EBITA* up 1% to £205 million
* Operating profit up 9% to £163 million
* Profit before tax up 12% to £173 million
o Basic EPS up 7% to 2.9 pence
o Adjusted EPS# down 3% to 3.4 pence
* Interim dividend up 2% to 1.35 pence
* Before exceptional items, amortisation and businesses disposed of (principally Granada Learning)
# Before exceptional items and amortisation
Operating Highlights
* 3% Revenue growth in H1
o ITV1 plc NAR down 8% to £654 million
* Viewing performance in H1
o ITV1 SOCI cumulative % share in H1 34.2% vs. 37.5% in 2005
o ITV family SOCI cumulative % share in H1 40.2% vs. 42.2% in 2005
* Multichannel performance
o ITV2, 3, 4, CITV and Men and Motors NAR up 46% to £70m
o ITV’s digital channels multichannel viewing increased by +12.3%
o 44% of all revenue growth in multichannel in H1 from ITV’s digital channels
o Two channels launched in H1 2006 – CITV and ITV Play
o ITV2+1 planned before end of 2006
* Exploiting our content
o Production/Worldwide revenue up 9% to £127 million
o Three new big hit returning series for ITV1 developed in-house: Lewis, Dancing on Ice and Soapstar Superstar
* Growing new consumer revenues
o Consumer revenue up over 300% to £69 million
o ITV Play delivers £9 million profit in H1
o Friends Reunited H1 revenue up +50%, margins over 50%
o ITV Broadband portal full launch Q1 2007
o Live streaming of Champion’s League from Q4 2006
o ITV Local broadband service to roll-out across ITV regions
o ITV1 will be the UK’s first live streamed channel over mobile operator 3’s network.
* Continuing disposal of non-core assets total contribution of £108 million in first half
o ITV will have returned £1.1 billion to shareholders by the end of 2006
* Outlook
o Near term weakness in advertising market
o ITV plc total NAR 9 months to September -8%
o Continued growth outside ITV1 NAR
o Strong autumn schedule
o Strong programme delivery slate
Commenting, Charles Allen, Chief Executive of ITV said:
