The U.K.’s ITV revealed strong profit growth in its full-year results for 2024, despite facing challenges from the U.S. actors and writers strikes and softening demand from traditional broadcasters.
The British media giant reported an 11% increase in group adjusted EBITA (earnings before interest, taxes, and amortization) to £542 million ($700 million), driven by record profits at ITV Studios and growth in its Media & Entertainment division.
“Three years ago we announced the second phase of our More than TV strategy and today’s results show our significant progress and success in navigating the rapidly changing media industry,” said Carolyn McCall, ITV chief executive, in the earnings release.
Total group revenue dipped 3% to $5.34 billion, with the decline in ITV Studios revenue offsetting growth in advertising. Group external revenue was down 4% at $4.51 billion.
The company’s streaming platform ITVX emerged as a standout performer, with digital viewing up 12% and digital advertising revenue jumping 15% in 2024. McCall noted that ITVX “has been the U.K.’s fastest growing streaming platform over the last two years” and is delivering attractive returns ahead of schedule. The platform’s growth helped drive Media & Entertainment (M&E) profits up 22% to about $322 million.
“During 2024, in-year incremental digital revenues exceeded incremental ITVX costs, two years earlier than expected,” the company stated, adding that by the end of 2025, it will have recouped the cumulative investment in ITVX “much earlier than anticipated.”
ITV Studios, despite a 6% revenue drop to $2.63 billion, increased its adjusted EBITA by 5% to $386 million with an improved margin of 14.7%. The studio division delivered several high-profile successes including “Mr Bates,” the biggest drama in the U.K. in 2024; “Fool Me Once,” one of Netflix’s most-watched shows of all time; and “Rivals,” described as “Disney+’s breakout hit.”
The company’s efficiency program delivered $77.5 million in savings during 2024, $12.9 million ahead of plan, and will continue into 2025 with an additional $38.7 million in non-content savings expected.
McCall emphasized ITV’s increasing resilience, noting that content production and digital revenues now make up nearly two-thirds of the company’s income. Statutory operating profit jumped to $410 million, up from $307 million in 2023, while profit before tax soared to $672 million.
The broadcaster’s profit-to-cash conversion rate was 83%, with net debt slashed to $5.57 billion from $713 million in 2023.
Looking ahead, ITV forecasts “good revenue growth” for ITV Studios in 2025, though margins are expected to be lower than in 2024 while remaining within their target range of 13-15%. The company also announced plans for its new digital studios label, Zoo 55, launched in January 2025, which aims to drive high-margin growth from the global digital distribution market.
ITV also expects to achieve at least $967 million in digital revenues by 2026. The company plans to expand digital distribution through a new partnership with YouTube and explore new revenue streams beyond advertising.
The board proposed a final dividend of 3.3p per share, bringing the full-year dividend to 5.0p, totaling around $245 million.
With content production and digital now accounting for close to two thirds of revenue, McCall emphasized that ITV is “becoming a more resilient business” well positioned to “deliver good profitable growth, strong cash generation and attractive returns to shareholders.”