ITV upbeat after first quarter meets expectations

(Sharecast News) - British broadcaster ITV reaffirmed its full-out outlook on Thursday, despite a dip in revenues, after first-quarter trading met expectations. The FTSE 250 firm saw total revenues ease 1% in the three months to March end, to £875m.

Within that, its media and entertainment division posted a 3% fall, to £489m, with total advertising revenues down 2%, while production arm ITV Studios saw revenues rise 1%, to £386m.

External revenues at ITV Studios soared 20%, boosted by strong demand from global streaming platforms and the end of writer and actor strikes in the US.

But that was offset by a 26% slump in internal revenues, hit by the non-return of Saturday Night Takeaway and The Tower, as well as the different year-on-year timings for other productions.

Carolyn McCall, chief executive, said: "Our first-quarter performance was in line with our expectations, demonstrating the continued successful implementation of our strategic priorities.

"ITV Studios returned to growth following the impact of the US strikes, and is on course to achieve good growth in total revenues over the full year, weighted to the second half.

"While the macroeconomic environment is uncertain, we remain confident."

In media and entertainment, ITV said it expected to see "continued strong growth" in digital advertising revenues.

It also reiterated plans to deliver "significant" non-content cost savings during the year, through its an ongoing efficiency programme.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: "ITV put in a solid showing over the first quarter, with strong sales of content to the likes of Netflix and Amazon Prime Video helping to offset a tough comparable period for advertising revenues.

"With more eyeballs on ITV's screens, advertising revenues are flowing in and the group remains hopeful of delivering at least £750m in digital revenue by 2026."