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ITV PLC (ITV)

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Thursday 15 May, 2008

ITV PLC

Interim Management Statement

RNS Number : 4936U
ITV PLC
15 May 2008
 



ITV plc INTERIM MANAGEMENT STATEMENT

15th May 2008


ITV plc issues the following Interim Management Statement in advance of the Company's Annual General Meeting to be held at 11 am today.


Implementation of ITV's turnaround plan on track:

ITV outperforming TV advertising market and increasing audience share


Group highlights

  • Group revenues for Q1 2008 increased 3% on 2007

  • ITV plc net advertising revenue (NAR) was up 2% in Q1

  • ITV plc NAR forecast to be flat over H1, ahead of total market down 1%  

  • ITV1 increasing its volume of commercial impacts year on year with total impacts across all ITV channels up 7%(1)

  • Content growth in Q1 driven by strong slate of international production commissions; acquisition of Scandinavian producer Silverback

  • Online growth continuing, with video views up 76% since the start of the year(2)


ITV plc performance

Q1 revenues (£m)


2008

2007

%

Broadcasting

409

417

(2)

Global Content (external revenues)

58

41

41

Online

9

8

13

Other (CSA)

16

13

23

Total 

492

479

3

Key performance indicators


2008

2007

%

ITV1 adult impacts (bill) (1)

81.3

80.1

1.5

ITV family adult SOCI (%)(1)

41.3

41.8

(1.1)

Q1 Content revenues, including internal(£m)

133

124

7

itv.com unique users - April (mill) 

6.2

4.6

34.8

Online video views - April (mill)

9.9

-

-


Efficiency savings and programme investment

  • ITV will deliver previously announced £41 million in efficiency gains by the end of 2008
  • Further savings of £40 million from the modernisation of regional services remain on track for 2009
  • ITV1's network programme budget (NPB) over 2008 and 2009 will be maintained at the 2007 level, through procurement efficiencies and other savings 
  • With Euro 2008 falling in June, ITV1's H1 NPB will be around £30 million higher than 2007, when the Rugby World Cup fell in H2.  
  • ITV's efficiency programme has moved on to identifying further savings to be delivered from 2009 to enhance earnings and fund digital investment 


Michael Grade, Executive Chairman of ITV, said: 


'ITV has made further progress in 2008 and the turnaround plan, outlined in September 2007, remains on track.  The forecast for the first half shows us outperforming the UK television advertising market - the first time this has happened since 2000.  Across ITV as a whole we are sustaining operational momentum in all parts of the business. 


'In Broadcasting ITV has continued to achieve its turnaround priority of maintaining viewing of its family of channels, even as digital penetration grows. Viewing share across the ITV family of channels is up 1.6at 23.4%.(1)  ITV1 has increased its volume of impacts and has broadcast the top-rated 265 programmes on commercial TV this year. (1)  ITV's digital channels have continued to perform strongly, delivering 35% more impacts year-on-year.(1)


'In Global Content we are starting to deliver on our strategy of increasing revenues in the UK and internationally, organically and by acquisition. Growth has been driven by a strong performance in international production and we've secured major prime-time commissions and format sales to Fox, NBC and CBS in the US. Internal production revenues are expected to be weighted to the second half.  We have completed the acquisition of Scandinavian producer Silverback AB for an initial cash consideration of £5.2m with a further payment of up to £8.8 million contingent on profit performance over a three-year period.


'Online, ITV is making progress with its strategy of maximising exploitation of programming, attracting more users online and, increasingly, engaging those users in video content. Video views across ITV sites have increased 76% since the start of the year to reach 9.9 million last month.(2)

'Project Kangaroo' - the video-on-demand programme service we are developing with the BBC and Channel 4 - is on track to launch later this year, while the core Friends Reunited site has now moved to a fully advertiser funded model.


'We continue to drive hard for efficiency savings across the business and demonstrate tight financial discipline consistent with our self-funding strategic plan.  We have disposed of our stakes in Liverpoolfc.tv and Arsenal broadband, and terms have been agreed for the sale of certain CSA businesses and assets.  


'We are working closely with regulators to modernise ITV's antiquated regulatory structure. The reviews of PSB and airtime sales regulation are both now underway.  


'Given the wider economic context, the television advertising market has held up relatively well in the year to date. In an uncertain economic environment, ITV continues to deliver advertisers real value and unique effectiveness across ITV1 and its digital channels.' 


Notes

  1. Figures for commercial impacts and viewing are based on BARB / Infosys data for adult impacts and individuals viewing for the year to 27 April 2008 (and equivalent period in 2007).
  2. Video views based on internal Company data for itv.com and itvlocal for April 2008 and the increase since January 2008.  Omniture data for itv.com unique users.  
  3. All figures for net advertising revenue are based on ITV plc's current forecasts, compared to the equivalent period in 2007 where relevant.
  4. ITV family includes: ITV1, ITV2, ITV3, ITV4, CITV, GMTV1, GMTV2, Men&Motors and time-shift variants. ITV digital channels include: ITV2, ITV3, ITV4, CITV, GMTV2, Men&Motors and time-shift variants.
  5. An interim dividend totaling £52 million was paid on 7 January. The Group's financial position has not otherwise materially changed since 31 December 2007.
  6. Figures presented in this interim management statement are not audited.  This announcement contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of ITV. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to (i) adverse changes to the current outlook for the UK television advertising market, (ii) adverse changes in tax laws and regulations, (iii) the risks associated with the introduction of new products and services, (iv) pricing, product and programme initiatives of competitors, including increased competition for programmes, (v) changes in technology or consumer demand, (vi) the termination or delay of key contracts and (vii) fluctuations in exchange rates.



For further enquiries please contact:


ITV plc

Tel: 0207 156 6000


Press queries

Mark Gallagher - Director of Group Corporate Affairs 

Ruth Settle - Director of Corporate Communications


Investor queries

James Tibbitts - Company Secretary

Tel: 0207 156 7009


Christy Swords - Director of Investor Relations

Tel: 0207 156 7022


Pippa Strong - Head of Investor Relations

Tel: 0207 156 7039



Tulchan Communications Group

Tel: 020 7353 4200

Andrew Grant

Susanna Voyle

Lizzie Morgan



This information is provided by RNS
The company news service from the London Stock Exchange
 
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