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| Version 1 | Version 2 |
|---|---|
| ITV profits fall as advertising revenue slips | ITV profits fall as advertising revenue slips |
| (about 1 hour later) | |
| ITV has reported a 14% fall in annual pre-tax profits to £553m as advertising revenues declined by 3%. | ITV has reported a 14% fall in annual pre-tax profits to £553m as advertising revenues declined by 3%. |
| The UK's biggest commercial broadcaster said it continued to rebalance and strengthen the business and blamed "wider political and economic uncertainty" for advertising falls. | The UK's biggest commercial broadcaster said it continued to rebalance and strengthen the business and blamed "wider political and economic uncertainty" for advertising falls. |
| It hailed a 13% increase in revenue from the ITV Studios division. | It hailed a 13% increase in revenue from the ITV Studios division. |
| Underlying pre-tax profit was up slightly on the year, from £843m to £847m. | Underlying pre-tax profit was up slightly on the year, from £843m to £847m. |
| Total viewing across its channels rose by 1% last year, with the share for the main ITV channel increasing from 15% to 15.4%. | Total viewing across its channels rose by 1% last year, with the share for the main ITV channel increasing from 15% to 15.4%. |
| The company said in its results statement that it was proposing a special dividend of 5p a share, causing its share price to open 1.5% higher. | The company said in its results statement that it was proposing a special dividend of 5p a share, causing its share price to open 1.5% higher. |
| Chief executive Adam Crozier said ITV had "delivered a good performance in 2016", pointing out that total external revenues were up 3%. | Chief executive Adam Crozier said ITV had "delivered a good performance in 2016", pointing out that total external revenues were up 3%. |
| "The continued growth in revenue and adjusted profit, despite a 3% decline in spot advertising revenues resulting from wider political and economic uncertainty, is clear evidence that our strategy is working and remains the right one for ITV," he said. | "The continued growth in revenue and adjusted profit, despite a 3% decline in spot advertising revenues resulting from wider political and economic uncertainty, is clear evidence that our strategy is working and remains the right one for ITV," he said. |
| Takeover speculation | |
| Mr Crozier added that ITV - home to shows including Coronation Street, the X Factor and Broadchurch - maintained its "leading position" in the UK television advertising market. | |
| "Whilst our net advertising revenues have declined, we again outperformed the UK television ad market as a whole," he said. | "Whilst our net advertising revenues have declined, we again outperformed the UK television ad market as a whole," he said. |
| Shares, which have fallen by a fifth in the past 12 months, rose 1.6% to 205.8p in morning trading. | |
| There has been speculation that ITV could be a takeover target by a foreign broadcaster. | There has been speculation that ITV could be a takeover target by a foreign broadcaster. |
| "We continue to see ITV move away from a reliance on NAR [net advertising revenue]," said senior market analyst Neil Wilson at ETX Capital, "which makes it much more resilient. | |
| "Non-NAR revenues now make up 53% of total revenues - a big change over the last few years." | |
| He added: "The UK economy's resilience has helped ITV's share price, but there are signs of cracks in the UK economy that are a concern for the broadcaster. | |
| "This makes any meaningful upside dependent on a takeover, as organic growth looks trickier, some very smart production acquisitions notwithstanding." |