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Broadcaster ITV says economic uncertainty to hit ad sales

LONDON (Reuters) – The increasingly uncertain economic outlook will weigh heavily on the revenues of British commercial broadcaster ITV over the last three months of the year. 39, year the impact of a slightly better performance than expected over the year so far.

A company sign is visible in front of an ITV studio in London, 27 July 2016. REUTERS / Neil Hall / Photo of the file

Advertising revenue increased 2% in the first nine months, but ITV announced a reduction about 3% of the turnover in business. fourth quarter and broadly flat for the year.

The company's shares trade at 3.8% at 0810 GMT on the back of the press release.

Analysts had warned before the trade update that the lack of a political agreement on the departure of Britain from the European Union in less than five months could deter major brands from devoting big advertising campaigns.

Citi said that the update of the negotiations was proceeding as planned, "a relief given the uncertainty". He attributes to the broadcaster a "purchase".

Housing Coronation Street and the X-Factor, ITV has been rebuilding in recent years to reduce its reliance on volatile advertising by strengthening its studio industry.

The number of ads on its online platforms has also increased as more and more viewers use the ITV hub to download programs they have missed.

Under the new director, Carolyn McCall, she is also expanding her subscription video on demand (SVOD) business to better compete in a market with Netflix and Amazon.com.

"We are very focused on implementing our strategy to build a stronger and structurally sound business, leveraging our strong operational performance in the areas of our business under our control", said General Manager McCall.

In July, ITV recorded a series of impressive results in the first half. The World Cup soccer and Love Island reality show had their share of overall attendance at a record 10 years and pushed up their total advertising revenue. by 2 per cent at the time.

He then predicted that advertising revenues would slow down during the year due to economic uncertainty and tougher comparisons.

In the studio sector, the turnover has grown by 10%, but the result for all the year would be affected by the execution of some programs, without Hells Kitchen in 2018, against two in 2017.

She however indicated that she still had a good portfolio of shows for new destinations, such as Love Island US and Sunday Night Takeaway in Australia.

"We have made good progress in implementing the strategy. The investment and cost reduction programs we defined in July are on track and, as mentioned earlier, we will update the market in February for our SVOD plans, says McCall.

Reportage of Kate Holton; Edition of Jason Neely and Keith Weir

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