Published On: Wed, Mar 2nd, 2016

ITV Revenue Rises By 15%, Company Ups Dividend And Proposes Special Dividend

ITV PlcToday ITV Plc (LON:ITC) released its full year results for the period ending 31st December 2015 which the company said was another “strong year”.

Over the period the broadcast and production company said revenue rose by 15% overall whilst ITV Studios saw revenue jump by 33% to £188m from £153 million in 2014.

The business said it was its sixth consecutive year of double digit profit growth with earnings being boosted by 6% growth in net advertising revenue reaching £1719 million from £1629 million in the prior year.

Adam Crozier, ITV plc Chief Executive, said:

“ITV delivered another strong year as we continue to grow and strengthen the business in the UK and internationally. Revenues were up 15% to just under £3bn and for the sixth consecutive year we achieved double digit profit growth, as adjusted EBITA grew 18% to £865m, with all parts of the business performing well.

Our Broadcast and Online business remains strong with advertising revenue up 6% and Online, Pay & Interactive up 23%. While our Family Share of Viewing was down 3% for 2015 we have started this year well with SOV on our main channel up 5% and ITV Family SOV up 2%. We have a strong programme slate for 2016, with 50 hours more drama as well as major rugby and football tournaments. ITV uniquely delivers the mass audiences demanded by advertisers. Continuing to deliver this scale and reach, as well as further strengthening our onscreen performance, remains a key focus for the company and particularly for the new creative leadership in the Broadcast business.

ITV Studios continues to perform strongly both organically and from our recent acquisitions, particularly Talpa. Through our ongoing investment ITV Studios has become a global production business with total revenue up 33% to £1.2bn and with 53% of revenues now coming from outside the UK.”

The business said its pipeline of new drama gives the business confidence moving into 2017 whilst ITVS has already secured a higher proportion of 2016 revenue at this point compared to 2015.

Crozier went on to say that they plan to continue to “build scale and to capitalise on the strong demand for high quality content that travels, with a particular focus on investing in creative talent and scripted projects, and working with more channels and platforms in the UK and internationally”.

They expect advertising to be different in 2015 due to the timing of major sporting events with ITV NAR being flat in Q1 however Q2 is expected to see benefits from the Euros allowing the business to outperform its estimate of the TV ad market.

Looking forward ITV noted that it is focused on organic growth whilst still working on acquisitions and partnerships.

Due to the results the board proposed a final dividend of 4.1p bringing the full year dividend to 6.0p, up 28%, ahead of previous guidance. The board also proposed a £400m special dividend, equivalent to 10.0p per share due to the “strong cash generation and robust financial position” which offers the business the flexibility to invest in growing the business and delivering returns to investors.

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