ITV’s international business has registered increased overall profit and revenue driven by a raft of international commissions. However, year-on-year sales at the UK free-to-air broadcaster’s programme sales division, Global Entertainment, decreased in 2011.
ITV’s production and distribution activities are housed in its ITV Studios division. Revenue increased 10% year-on-year, taking the total to £612 million. EBITA profit of £83 million was up £2 million.
ITV Studios now makes 55% of ITV1’s output and £345 million of its revenues came from the UK. International production revenue was up by a third, driven by 45 new commissions including the upcoming ITV Studios coproduction Titanic. Programme sales revenue, meanwhile, fell £3 million, taking the total to £126 million and ITV blamed the weak DVD market in the UK.
Kevin Lygo joined ITV Studios as managing director in 2010 and ITV CEO Adam Crozier said headway was being made in the production and distribution business. “We are making encouraging progress but, given the long lead time involved in production, there is still a lot of work to do to develop scale in our content business on the international stage,” he said. “We will continue to develop and invest in our international network as we build on the momentum which has been created within ITVS.”
ITV recorded overall group revenue of £2.1 billion in 2011, a 4% year-on-year increase. EBITA was £462 million, a 13% increase year-on-year.
“We’re now almost two years into our five-year Transformation Plan and our continued growth in revenue and profit – at a time when the advertising market is broadly flat – demonstrates that we’re performing in line with our strategic priorities,” Crozier said. “The increase in non-advertising revenues of £93 million, driven by our studios and online businesses, is clear evidence of progress in rebalancing the company and our ability to grow new revenue streams.”