Stellar Love Island figures fail to save ITV from slide in sales and earnings
ITV has reported a fall in revenues and earnings for the past six months, despite hailing a strong performance by Love Island.
The broadcaster said profits before tax and interest fell by 16 per cent to £310 million in the six months to June.
It pointed to a 5 per cent drop in turnover to £1.8 billion, although summer hit Love Island helped boost revenues towards the end of the period.
ITV’S flagship reality TV programme, which opened to its highest-ever viewing figures last month, helped drive the broadcaster to an 18 per cent increase in online revenues after delivering average viewing figures of 4.2 million.
Chief executive Dame Carolyn Mccall said Love Island 2019 has made an extra £8m compared to last year’s edition. She said: “Advertising in the second quarter was better than expected but political uncertainty continues to weaken demand.
“After March there was prolonged uncertainty after not getting that expected deal with Europe. We have seen a tick up now because Love Island is a big show. People are spending money around that show so that has ended June better than expected.”
The group expects a boost from the launch of its Britbox streaming service in the fourth quarter.
Alasdair Ronald of Brewin Dolphin said ITV would need to adapt, commenting: “The company is suffering from the changing ways people consume media, namely competition for viewers’ time from subscription video on demand (SVOD) services, such as Netflix. In the UK, SVOD penetration has risen above 40 per cent and, while broadcasting accounts for a substantial slice of profits, the hope is that streaming via ITV Hub should open up new revenue streams from subscriptions and original content.”