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Highlights
- ITV Studios Achieves Record Profits: Group adjusted EBITA surged 11% in 2024, driven by ITV Studios' success and increased Media & Entertainment (M&E) profitability.
- Digital Expansion Continues: ITVX saw a 12% increase in digital viewing and a 15% rise in digital advertising revenue, set to break even by 2025 ahead of schedule.
- Cost Savings Exceed Expectations: £60 million in permanent efficiencies were achieved in 2024, surpassing the £50 million target, with an additional £30 million planned for 2025.
ITV Plc (LSE:ITV) has reported financial results for the full year ending December 31, 2024, reflecting the company’s successful strategic execution. Despite a slight decline in total revenue, ITV delivered impressive profit growth, driven by record earnings in ITV Studios and improved margins in its Media & Entertainment (M&E) division.
The company’s group adjusted EBITA increased by 11% to £542 million, demonstrating its resilience and adaptability in a challenging market. ITVX, the broadcaster’s digital streaming platform, continued its robust performance, with digital viewing up 12% and digital advertising revenue rising 15% year-on-year. Notably, ITV expects to recover its total investment in ITVX by the end of 2025, well ahead of initial projections.
Financial Performance Overview
ITV’s total revenue declined by 3% to £4,140 million, primarily due to an anticipated dip in ITV Studios revenue, despite growth in total advertising revenue. Group external revenue also fell by 4% to £3,488 million. However, adjusted EBITA climbed 11%, reflecting ITV Studios’ record-breaking profits, improved efficiency measures, and enhanced profitability in the M&E segment.
Other key financial metrics include:
- Statutory operating profit of £318 million, up from £238 million in 2023.
- Statutory profit before tax at £521 million, significantly higher than the £193 million reported in 2023.
- Adjusted earnings per share (EPS) increased 23% to 9.6p, while statutory EPS more than doubled to 10.4p (2023: 5.2p).
Cost Management and Future Plans
ITV’s continued focus on operational efficiencies delivered £60 million in permanent cost savings in 2024, exceeding the company’s £50 million target. This programme will extend into 2025, with an additional £30 million in non-content savings planned.
Looking ahead to 2025, ITV projects:
- Total content costs of approximately £1.25 billion, with reduced sports-related expenses.
- £30 million in further non-content savings, combining new initiatives with 2024 cost-cutting benefits.
- Adjusted financing costs of around £40 million and an effective tax rate of approximately 27%.
- £45 million in exceptional items, mainly related to ongoing transformation and digital investments.
Shareholder Returns and Future Investments
ITV’s financial performance has enabled the company to continue rewarding shareholders. The Board has proposed a final dividend of 3.3p per share, bringing the total dividend for 2024 to 5.0p per share, equating to approximately £190 million in shareholder returns.
The company also plans to invest £65 million in digital capabilities, reinforcing its commitment to future growth and innovation.
