Love Island lifts ITV's half time results
UK broadcaster ITV has reported a better than expected set of numbers after revenue was lifted by popular and controversial reality show, Love Island.
Total revenue at the firm for the first half of the year fell by 7% to £1.47 billion, advertising revenue was 5% lower and earnings before tax and others deductions came in 13% lower at £327 million.
However, this was better than the market was expecting and the results have lifted the shares 6% to £1.12 in London on Wednesday morning.
Moreover, ITV said its online revenues surged 18%, despite “tough comparatives”.
Two Love Islands for 2020
The company announced on Tuesday that it would run two series of Love Island next year. The reality show is currently the most watched TV programme in the UK among adults aged 16-34, and ITV said the huge popularity of the show helped lift ad revenues.
Commenting on the half-year results, Carolyn McCall, ITV Chief Executive, said: "ITV delivered another good viewing performance in the first half of the year. Online revenues grew strongly up 18% despite tough comparatives, with Love Island providing a strong finish to the half.
“This was reflected in better than expected total advertising revenue.
Political and economic uncertainty
"The economic and political environment remains uncertain but we are very focused on delivering our strategy and creating a stronger, more diversified and structurally sound business to enable ITV to take advantage of evolving viewing and advertising opportunities.
"We are making good progress in each area of our strategy as we become an increasingly digital entertainment company.
“BritBox is set to launch in Q4, as is our new programmatic addressable advertising platform, and we are accelerating our digital and data capabilities.
"ITV Studios has a solid pipeline of new and returning shows this year - from I'm A Celebrity… Get Me Out of Here! to World on Fire to Snowpiercer - and is firmly on track to deliver our full year guidance.
"We continue to deliver strongly on our cost savings where we are targeting, in addition to the original £35m to £40m, a further £5m this year and £15m between 2020 to 2022, totalling £55m to £60m over 2019 to 2022.
"We have a solid balance sheet which enables us to make the right decisions to build a robust and growing business and deliver returns to shareholders in line with our guidance."