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ITV full-year profits, revenue hit by pandemic

Tue 09 March 2021 07:47 | A A A

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(Sharecast News) - Broadcaster ITV posted a decline in full-year profit and revenue on Tuesday as it took a hit from the Covid-19 pandemic.

In the year to the end of December 2020, statutory pre-tax profit fell 39% to £325m, while revenue dropped 16% to £3.26bn. Adjusted group earnings before interest, tax and amortisation were down 21% to £573m, coming in ahead of analysts' expectations. ITV said this was driven by a strong end to the fourth quarter and tight cost control.

Total revenues from ITV Studios fell 25% to £1.37bn, as the pandemic impacted the majority of the broadcaster's productions from March. Meanwhile, total advertising revenue was 11% lower at £1.57bn.

ITV said the current advertising environment remains challenging and that the tightening of restrictions at the end of last year and the national lockdown introduced at the start of January 2021 have impacted the first quarter, with total advertising revenue expected to be down around 6%.

Chief executive Carolyn McCall said: "We are encouraged by the roadmap out of lockdown. We are seeing more positive trends in the advertising market in March and April and the majority of our programmes are now back in production.

"However, there remains uncertainty in all markets around the world with the potential risk of lockdowns, which if they materialise will affect revenues. We are committed to taking further cost out of the business while further investing to accelerate the delivery of our strategy and digital transformation."

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