ITV’s first-quarter revenue rose by 1% to £766mn, driven by 4% growth in Studios which benefitted from helpful timing of content deliveries to global streaming platforms. This was partly offset by a 2% decline in Media & Entertainment (M&E).
Within M&E, digital advertising revenue grew by 14%, helped by strong growth in ITVX’s total streaming hours. Non-advertising revenue was down 8%.
Net debt rose by £26mn to £592mn over the quarter.
In the second quarter, M&E total advertising revenue is expected to rise by around 10%, helped by the Men’s Football World Cup. Studios is expected to deliver “good revenue growth” over the full year.
ITV remains in active discussions with Sky regarding the possible sale of its M&E business.
The shares rose 1.9% in early trading.
Our view
HL view to follow.
ITV key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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