A tough advertising market saw profits plunge at ITV this year with CEO Carolyn McCall pledging to “reshape” the cost base of the broadcaster behind Coronation Street and Love Island.
While ITV’s studio arm and its ITVX Streaming platform are showing signs of progress, profits crashed 60% to £193 million.
McCall says the ad market is in the worst recession “since the global financial crisis” of 2008.
The studio arm won praise recently for the hit drama Mr Bates v the Post Office, though that business has required significant investment to get going.
Mr Bates was ITV’s most successful drama show in years, it said.
McCall, formerly of The Guardian and easyJet, said cost cuts of £150 million will be delivered by 2025 – a year earlier than planned.
She said: “2023 was the year of peak investment for Streaming, which together with the successful execution of our strategy and the efficiencies delivered to date have made ITV more robust. ITV has a leading, scaled, global Studios business, a high growth Streaming service and a cash generative linear advertising business. This ensures that we are well placed to grow profits from here as we continue to drive material efficiencies, invest behind our strategic priorities and deliver returns to shareholders."
McCall, one of the most high-profile women in business, reported total sales down 2% to £4.3 billion, with TV advertising down 15%.
The shares rose 3p today to 64p which leaves the business valued at £2.6 billion. The stock is down 50% on five years ago.
McCall plans more savings.
She said: “We are now in the early stages of a new strategic restructuring and efficiency programme across the Group to reshape the cost base, enhance profitability, and support the growth drivers of Studios and Streaming.”
