23 June 2004
23 June 2004
ITV ANNOUNCES NEW MULTICHANNEL REVENUE TARGETS
ITV Plc will today announce the growth strategy for its multichannel operations
with new revenue targets and increased investment in programming. The Company
will also reveal an increase in total ITV advertising revenues for the six
months to June 2004.
Presentations will be made to analysts in London by the ITV management team
headed by Charles Allen, Chief Executive. Highlights of the presentation will
• A new target to deliver £150m of multichannel revenues by 2007
• £36 million additional investment in multichannel programming including a
doubling of ITV2's programming budget and the launch of ITV3
• Total ITV channels' NAR estimated to be up 4.9% for the six months to June
• Enhanced regional sales operation with revenues up 23% for the six months
to June 2004
• Strong autumn schedule on ITV1 with a host of new programmes
• ITV Sales' strategy to grow the total TV market and develop new CRM
• Cost saving programme on target and ahead of schedule
ITV will set a new target of delivering £150 million of multichannel revenues by
2007 and unveil an increase of £36 million of annualised investment in
multichannel programming. This investment represents an increase of 150% and
will enable a doubling of ITV2's programme budget and the launch, in Q4 2004, of
ITV3, aimed primarily at the 35+ demographic.
ITV2 is targeting a number of new deals as a direct result of the additional
investment including the acquisition of selected sports rights, US series and
movies. ITV2, which targets the 16-34 demographic, is now the 3rd most watched
non-terrestrial channel in multichannel homes with a higher total reach than Sky
One. The channel continues to show impressive growth and ratings overall are up
8.3% this year to date compared to 2003. For the target 16-34 year olds
commercial impacts have increased by 14.8% in 2004 to date.
ITV3, which will launch in Q4 2004, will target the 35+ demographic with a
powerful collection of ITV dramas and movies. This demographic is underserved
in the UK market and represents a significant commercial opportunity as it
controls over 80% of the nation's wealth.
ITV Performance and Advertising Revenue
ITV channels' total net advertising revenues (NAR) continue to improve with the
six months to June 2004 estimated to be up 4.9% over the same period last year.
Within this figure ITV1 NAR is up an estimated 3.7% for the period and ITV2 is
The migration to one system of airtime management and optimisation for ITV Sales
has released additional inventory and resources have been strengthened in the
regional sales operation to maximise this opportunity. As a result, regional
sales are up 23% for the first half of 2004 compared to the same period last
Despite the continued increase in multichannel penetration and the relative
weakness of BBC1's ratings performance this year, ITV1's share of adult
commercial impacts (SOCI) for the five months to the end of May 2004 was 41.8%,
against 42.7% for the full year 2003. ITV1 achieved a SOCI of 41.9% for the
second half of 2003, providing a lower comparator for the rest of the year.
ITV1 NAR for July is estimated to be up 4% over last year, and for the three
months from June to August 2004 ITV1 NAR is expected to be up 5.5%.
Euro 2004 in June and a strong summer and autumn schedule to come will boost
ITV1's impact share in the balance of the year. Euro 2004 has to date proved
extremely successful for ITV1 with a peak audience of some 21 million viewers
watching England's opening game against France.
ITV1 will deliver a strong autumn schedule with a range of new dramas including
a new adaptation of Miss Marple, Ahead of the Class starring Julie Walters and
Doc Martin with Martin Clunes. Returning dramas will include Rosemary and
Thyme, the highest rating new drama of 2003, and Foyle's War, which averaged
over 9 million viewers for its last series.
In entertainment ITV1 will see the return of the biggest reality show on UK
television, I'm a Celebrity...Get Me Out of Here! and the first project from
Simon Cowell, recently signed to an exclusive deal with ITV1. In addition,
Parkinson will make its debut on ITV1 this autumn.
ITV will also unveil plans for a new Customer Relationship Management (CRM)
programme headed by Justin Sampson, previously Managing Director of the Radio
Advertising Bureau. The programme will target the growth of the total TV market
and incorporate a range of new initiatives that will communicate to advertisers
the effectiveness of advertising on ITV.
ITV is on track to deliver the £100 million of cost savings from the merger and
are already achieving these savings faster than originally planned with the
December 2004 target already met. The £100 million does not include any savings
that might be achieved in the future through licence fee reductions or changes
to PSB obligations or from a reduction in sports costs.
Charles Allen, Chief Executive of ITV Plc, commented:
'Just four months after the creation of ITV Plc our strategy is delivering. The
merger has enabled us to attract and retain the best talent in the industry.
Already the benefits of one ITV are apparent in our performance and efficiency.
We have a strong foundation for the ambitious plans we have to grow our
Nicola Howson ITV 020 7843 8091 / 07768 275509
Simon Rigby Citigate Dewe Rogerson 020 7638 9571 / 07771 784446
James Tibbitts ITV 020 7620 1620
This information is provided by RNS
The company news service from the London Stock Exchange