ITV frets over mounting Brexit concerns and tightening advertising market
BROADCASTER ITV has said advertising revenues are coming under pressure amid economic uncertainty as Brexit worries take their toll.
The group behind hit shows including Love Island and I’m A Celebrity said total advertising revenues rose 2 per cent in the first nine months of the year.
But it warned an “increasingly uncertain economic environment” is set to see total ad revenues fall around 3 per cent in the fourth quarter and be broadly flat over the full year.
Shares fell 4 per cent on the gloomier ad outlook.
Carolyn McCall, ITV chief executive, said: “Online advertising continues to deliver strong double-digit revenue growth.
“We are seeing some softening in ITV Family net advertising revenues in the fourth quarter due to the increasingly uncertain economic environment and as a result we expect total advertising to be down around 3 per cent in the fourth quarter and broadly flat over the full year.”
Its third quarter trading update showed total external revenues rose 6 per cent to £2.1 billion in the first nine months of 2018, with turnover up 10 per cent in its ITV Studios production arm and online revenues rocketing 43 per cent higher.
Broadcast and online revenues overall rose 2 per cent to £1.5 billion.
It saw a robust rise in audience figures, with its share of viewing for the core ITV channels up 9 per cent and online viewing up 37 per cent.
Ms McCall said the group had a strong pipeline of popular shows in new territories, including Love Island US and Sunday Night Takeaway in Australia.