ITV PLC Reports 79% Fall in Half-Year Pretax Profit

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ITV PLC, the British broadcaster, has announced a significant decrease in pretax profit for the first half of the year. However, the company remains confident in achieving its key targets.

Financial Performance

For the half year ended June 30, ITV reported a pretax profit of £45 million ($58.2 million), marking a 79% decline from £219 million in the same period last year. Operating costs also increased to £1.57 billion, up from £1.45 billion.

Adjusted earnings before interest, taxes, and amortization (EBITA), a preferred metric for the company, fell to £153 million compared to £318 million in the previous year.

Group external revenue for the period amounted to £1.64 billion, slightly lower than the £1.68 billion recorded previously. While Studios revenue saw an 8% increase to £1.00 billion, media and entertainment revenue experienced a 9% decline to £964 million.

Furthermore, advertising revenue encountered a significant decrease of 11% to £811 million.

Dividend and Future Outlook

ITV’s board has declared an interim dividend of 1.7 pence per share, remaining steady from the previous year. The company reaffirms its commitment to providing a total dividend of at least 5 pence for the entire year.

Despite the challenging financial results, ITV remains optimistic about achieving its key performance indicators (KPIs) and is confident in generating a minimum of £750 million in digital revenue by 2026.

“As we stated during the full-year results in March, 2023 will represent the peak net investment year for our streaming business, and we anticipate profit growth going forward,” emphasized Chief Executive Carolyn McCall.

In conclusion, while ITV faces a decline in pretax profit and advertising revenue, the company stays focused on reaching its goals and remains positive about the future of its streaming business.

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