ITV reports 12% drop in profit

ITV plc has reported lower profit for 2022 despite an increase in revenue, after investing in the business.

The commercial broadcaster generated total group revenue of £4.3bn for the 12 months to 31 December 2022, up 7%, with ITV Studios revenue growing 19% to £2.1bn.

Adjusted group earnings were down 12% to £717m following a 1% decline in total advertising revenue and ITV’s investment in M&E (media and entertainment) to drive future growth, which was partly funded by £23m of cost savings.

The company has significantly increased the volume of content available for streaming, from 4,000 hours in 2021 to 19,000 in 2022, and its digital advertising revenue last year grew 17% to £343m.

“As a result of ITV’s deliberate strategic actions and strong execution, ITV has a scaled and expanding global production business, a rapidly growing targeted digital advertising business, a resilient linear TV advertising business and a unique vertically integrated producer broadcaster and streamer model,” said chief executive Carolyn McCall.

“This means that ITV is now a demonstrably more balanced business which is ideally placed to take advantage of the growing demand for quality content from viewers, broadcasters and streamers and take a larger share of the digital advertising market.”

ITVX, the broadcaster’s relaunched streaming service, attracted 1.5 million new registrations in its first two months and total streaming hours increased by 69% compared to the same period a year earlier.