Despite a drop in ratings, ITV has reported a strong performance in advertising revenues.
The company has seen a three per cent drop in audience share and a six per cent drop on its main channel. The Guardian reports the fall in audience numbers is due to a "string of factual and entertainment flops". The reboot of Harry Hill's Stars in their eyes, for example, did not do as well as planned – the show was cancelled after just one season. However, the success of shows like Britain's Got Talent has had a positive impact on numbers.
According to ITV chief executive Adam Crozier, improving the network's share of viewing is a "key focus".
Net advertising revenues at ITV rose 12 per cent to £754 million during the first three months of the year.
Yesterday, (May 14th) the broadcaster was also hit by strike action over pay ahead of the company's annual general meeting with share holders.
Members of the technicians' union Bectu and the National Union of Journalists voted in favour of industrial action in protest of a two per cent pay award.
The unions have been pressing for a bigger wage increase, after the company announced a 39 per cent increase in pre-tax profits.
Gerry Morrissey, general secretary and Bectu told the BBC: "There is a huge disparity between the pay offered to staff and the bonus package to executives as well as shareholder dividends."
He said that members were helping to make the profits, but were not sharing in them.
While advertising revenue and profits might be up, the broadcaster has warned that it will be a challenge to turn around declining audience numbers – especially since it will be losing the rights to the Uefa Champions League at the beginning of the season. The channel's most popular drama, Downton Abbey is also coming to an end after the next series.
One opportunity the company is considering is bringing the former Top Gear team – presenters Jeremy Clarkson, James May, Richard Hammond and executive Producer Andy Wilman - to ITV. ITV director of television Peter Fincham met with them last week – but it is not yet clear where the Top Gear stars will end up.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.