Ad cash key to ITV’s fifth year of strong profits
SHARES in ITV leapt 5.7 per cent yesterday, as investors celebrated the fifth consecutive year of double-digit growth with pre-tax profits up almost 40 per cent.
The television company was boosted by a six per cent increase in net revenues from advertising. cashing in on hits such as Downton Abbey and Dancing on Ice.
Despite this, the company reversed its 2013 increase in market share for viewer numbers by recording a five per cent decline due to strong competition from the BBC.
The decline left ITV with a market share of 22 per cent in 2014. However, its share of the British TV advertising market ticked up to 46 per cent.
The company said viewers will flock back in the coming year, as it has the broadcast rights for the Rugby World Cup and the start of new dramas such as Arthur & George.
The largest growing sector of the company was its online, pay and interactive division as consumers increasingly turn to laptops and tablets to watch catch-up TV.
Total revenue in the company was up eight per cent to £2.6bn, with pre-tax profits up 39 per cent to £605m. On the back of this, the board to recommended a 34 per cent increase in the dividend to 4.7p.
Adam Crozier, ITV chief executive, said the outlook looked strong: “For 2015 we’re confident of further good revenue growth in all parts of ITV.”