×

ITV Reports 3% Drop in Revenue in First Quarter

ITV, Britain’s biggest commercial broadcaster, reported a drop in revenue of 3% over the first quarter Wednesday, despite growth at ITV Studios and a strong performance by ITV America.

Total revenue during the quarter ending March 31 came in at £731 million ($950 million), down from £755 million ($982 million) in the same period last year. Fueling that drop was a 6% fall in broadcast and online revenue.

But the company’s production arm, ITV Studios, generated 7% more revenue than last year, rising from £322 million ($419 million) to £343 million ($446 million). And its viewership share was up by 4% on its main channel and by 32% online. ITV airs such popular programs as “Broadchurch” and “Britain’s Got Talent” and long-running soaps “Coronation Street” and “Emmerdale.” It was also the home of “Downton Abbey.”

Adam Crozier, ITV’s chief executive (pictured), said overall financial expectations for 2017 remained unchanged.

“ITV’s overall performance and the shape of the U.K. advertising market are very much as we anticipated and our guidance for the full year remains unchanged,” said Crozier, who is stepping down from his post at the end of June.

“We expect to grow our share of broadcast and will continue to deliver good growth in Online, Pay & Interactive, driven by strong demand for online advertising,” Crozier added. “We are confident that ITV Studios will report good organic revenue growth for 2017, and we have already secured over 75% of the expected full year’s revenue. We remain on track to deliver £25 million overhead savings and a £25 million reduction in the program budget with the absence of a major sporting event.”

The goal of cutting £25 million in overhead costs in 2017 was announced last year. Crozier said at the time that the cuts, which would involve “some” job losses, were necessary because of the economic uncertainty prompted by Britain’s decision to leave the European Union.

Crozier has been at the forefront of ITV’s effort to lessen its dependence on advertising and to build its production capabilities. ITV Studios produces more than 7,000 hours of content a year and has gone on an acquisition spree, buying a host of production companies.

Popular on Variety

More Biz

  • A view of the SK Telecom

    Korean Regulators Approve Four-Way Streaming Merger

    South Korean regulators have approved the merger of the video services of three local broadcasters and SK Telecom’s streaming app Oksusu. The new service, operating under the name Wavve will launch in September and be Korea’s largest. Proposed in January as a measure to combat the incursion of international video players, the deal was given [...]

  • Two bull statues are displayed outside

    Alibaba Delays Hong Kong Share Listing (Report)

    Against a background of political tension in Hong Kong, Chinese tech and entertainment giant Alibaba is reported to have delayed its planned share listing in the Asian financial capital. Reuters cited two unnamed sources in a report Wednesday on the decision to postpone. One said that the delay was approved at a board meeting the [...]

  • Mass Appeal and Universal Launch Hip-Hop

    Nas, Mass Appeal and Universal Music Launch Hip-Hop Label in India, Sign Divine

    Mass Appeal and Universal Music Group today announced the launch of Mass Appeal India – a new label dedicated to amplifying India’s burgeoning hip-hop culture on a global scale. The new label’s operations will be based Universal Music India’s headquarters in Mumbai and will function as a multi-channel partnership between the two companies. According to the announcement, Mass Appeal India will sign and [...]

  • Harvey Weinstein, center, arrives to court

    Weinstein's Attorneys Seek to Move Trial to Long Island or Albany

    Harvey Weinstein’s attorneys want his rape trial moved to Long Island or Albany, citing the “circus-like atmosphere” surrounding the courthouse in Manhattan. Weinstein is set to go on trial on Sept. 9 on five charges of rape and sexual assault. The disgraced producer faces a potential life term if convicted. In a motion to the [...]

  • Edge, left, Adam Clayton, and Bono

    New York’s PlayStation Theater to Close (EXCLUSIVE)

    New York’s PlayStation Theater, a 2,100-capacity venue located in Times Square and operated by Bowery Presents, will close at the end of 2019, a source close to the situation tells Variety. The venue will close with a New Year’s series of shows from the Disco Biscuits. The theater, which is located two stories beneath the [...]

  • Courtesy of Earwolf

    How Lauren Lapkus Tossed the Script and Created a Podcasting Hit

    Lauren Lapkus has tossed the script on what makes most podcasts a hit. At a time when many of the most downloaded shows are true crime investigations or celebrity interviews, she’s doing something entirely different on each episode of “With Special Guest Lauren Lapkus.” Each hour-long installment is a free-wheeling, completely improvised ride. One show [...]

More From Our Brands

Access exclusive content