ITV posts 10% drop in Q1 total advertising revenue

(Sharecast News) - Broadcaster ITV reported a drop in first-quarter total advertising revenue (TAR) on Thursday and said the outlook was "challenging" given the current macroeconomic backdrop. In the three months to the end of March, TAR fell 10%. However, this was "as expected and better than the wider TV advertising market", it said.

ITV said TAR is forecast to decline 12% in the second quarter, with expected falls of 12% in April, 10% in May and 14% in June compared to the same period a year earlier.

Chief executive Carolyn McCall said the company was looking forward to the third quarter, however, with Love Island and the Rugby World Cup set to draw large broadcast and streaming audiences.

Total external revenue was down 7% during the quarter to £776m, while ITV Studios revenue was flat at £457m.

Revenue in ITV Media & Entertainment (M&E) declined 9% to £495m, with TAR as expected, down 10% and again, better than the wider advertising market.

The broadcaster said that ITVX, its free, ad-funded streaming service, continued to perform strongly, with total digital revenues up 29% and total streaming hours up 49% in Q1.