ITV set for ads slump despite World Cup

ITV has warned of a looming slowdown in advertising even as football fans tune in for the World Cup this winter.

The broadcaster said it expects advertising revenue to rise 3pc in November and as much as 10pc in December thanks to a festive football boost.

But that will not be enough to prevent a decline for the year as a whole, with the outlook set to worsen in 2023. ITV posted a 2pc slide in advertising revenue for the first nine months of the year, including a drop of 21pc in August.

The I’m a Celebrity broadcaster pointed to a “high degree of economic uncertainty” as brands cut back.

Full-year advertising revenue is expected to fall by between 1pc and 1.5pc compared with 2021. Shares fell more than 5pc. It overshadowed a robust performance in the first nine months, with revenue up 6pc to £2.5bn.

This was driven by a 16pc jump in revenues from ITV’S production business, thanks to new and returning programmes including A Spy Among Friends and Hell’s Kitchen.

ITV Studios has proved a key driver of growth for the company as its traditional business continues to decline. Non-advertising revenue now accounts for more than half the company’s total.

Last month, the Financial Times reported that ITV is exploring a sale of a stake in the division, which is behind Love Island and Bodyguard.

The update came as ITV prepares for the launch of its new streaming service ITVX, which will combine its catch-up player ITV Hub and subscription service Britbox with a slate of new shows.

ITV said the platform will launch on Dec 8 – later than original plans to launch before the World Cup – with new series including Litvinenko, about the poisoning of the Russian defector.

Carolyn Mccall, chief executive, said: “ITV Studios continues to outperform the growing content market and will exceed 2019 revenues in 2022.”