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(Sharecast News) - Media giant ITV said on Thursday that its firstquarter trading performance was in line with expectations, with group external revenue up 1% and total revenue broadly flat yearonyear.
ITV said its Studios arm had delivered a 4% increase in total revenue, driven by an 8% rise in external sales as major scripted deliveries landed with global streamers, including Skyscraper Live for Netflix, Rivals season two for Disney+, and Love Island US: Beyond the Villa for Peacock. Internal revenue fell 7%, as anticipated, reflecting lower volumes in Soaps and Daytime following previously announced scheduling and production changes.
Media and Entertainment revenue slipped 2%, although digital advertising continued to outperform, rising 14% on the back of a record start to the year for ITVX. Total streaming hours climbed 13%, supported by titles such as Gone, Love Island: All Stars and the Six Nations. Nonadvertising revenue in M&E declined 8%, in line with guidance.
The FTSE 250-listed firm also highlighted that discussions with Sky over a potential sale of its M&E division remain ongoing.
Looking ahead, ITV maintained its fullyear guidance, with studios expected to deliver good revenue growth ahead of the wider market and margins at the lower end of its 13% to 15% range. It also said M&E was set to continue generating strong profitable digital growth, with ITV expecting total advertising revenue to rise around 10% in Q2, 4% in the first half, and a strong July boosted by the men's Football World Cup.
As of 0945 BST, ITV shares were down 1.38% at 76.63p.
Reporting by Iain Gilbert at Sharecast.com
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