Historic drama rocks ITV as pandemic pummels profits and advertising sales

ITV profits plummeted by 93pc in the first half of the year after the pandemic triggered a historic drop in advertising sales and paralysed television productions.

The commercial broadcaster said profits fell from £222m to just £15m in the first six months of the year, even as its viewing figures rose during the virus lockdown.

A large part of the pain came from an unprecedented 43pc decline in advertising revenues from April to June, as cash-strapped firms reigned in spending.

At the same time, social-distancing rules forced ITV’s studios arm to freeze production of several major TV shows – its other big source of income.

Carolyn McCall, the broadcaster’s boss, said a gradual lifting of restrictions was putting the company back on an ‘upward trajectory’, with productions resuming and advertisers coming back.

But the 58-year-old warned: ‘This has been one of the most challenging times in the history of ITV.’

Half-year advertising revenues plunged from £849m to £671m overall, while revenue from its studios business fell from £758m to £630m. In response, the company scrapped its interim dividend. Shares rose 3.9pc, or 2.4p, to 63.3p after the announcement, but they are still down by nearly 60pc this year.

With millions of families stuck indoors during the virus lockdown, one bright spot for ITV was viewing figures.

The number of people watching traditional broadcast television rose for the first time since 2011. The firm said people were also using time at home to stream more shows – including hit Jane Austen adaptation Sanditon (right) – online.