ITV, the UK network, is aiming for an additional £20M ($25.9M) in net cost reductions due to the effects of the 2023 Hollywood labor strikes on its production division and a decline in broadcaster demand.

The broadcaster reported group revenues of £2.74B, an 8% decrease for the nine-month period ending September 30, 2024. Media and entertainment revenue, including linear channels, rose by 4% to £1.52B, while digital revenue increased, with ITVX boosting streaming hours by 14%.

However, the latest trading update indicated a 20% drop in revenues for ITV Studios, the production branch responsible for shows like Love Island and I’m a Celebrity… Get Me Out of Here!, which fell to £1.21B. This decline was attributed to the expected timing of production deliveries, primarily concentrated in Q4, as well as the repercussions from the 2023 U.S. writers and actors strikes. ITV anticipates that roughly £80M in revenue will shift from 2024 to 2025 due to the industrial action.

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A decrease in demand from free-to-air broadcasters in Europe also affected the figures, although ITV Studios successfully delivered seasons of My Mum Your Dad, Queer Eye, Love Island, and Showtrial during this period.

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Despite these challenges, ITV Studios is set to achieve “record EBITA” for the full year, with a substantial number of shows slated for Q4. Revenue for 2024 is expected to decline by “mid single digits,” which is only slightly down year-on-year when excluding the impacts of the U.S. strikes.

ITV disclosed that its ongoing cost-saving initiative is “progressing well,” with the previously targeted £40M savings for 2024 likely to be met. The broadcaster also announced an additional £10M in content cost reductions and £10M from the “early delivery of permanent non-content savings” originally planned for the following year.

The current net debt stands at £437M, and last year, ITV secured a new £200M bilateral loan facility maturing in December 2030.

ITV CEO Carolyn McCall stated that the network is making “good strategic progress” and anticipates improvement for ITV Studios in Q4.

“ITV Studios is performing well despite the anticipated effects of the writers’ strike and a softer market from free-to-air broadcasters,” she remarked. “ITV Studios has had a strong start to Q4, aligning with expectations, which will ensure it achieves record profits in 2024. The studios are experiencing significant creative and commercial momentum, as evidenced recently with shows like Rivals for Disney+ and Ludwig for the BBC, and are on track for solid revenue growth in 2025 and 2026.”

She emphasized that the cost-saving program is advancing effectively through “restructuring, improved efficiency, and streamlined operations.”

“Combined with our strategic initiatives and revenue outlook, this continues to bolster our confidence in achieving an increase in group profit this year.”

Person: Carolyn McCall, Lachlan Murdoch
Company Names: ITV, ITV Studios, Disney+, BBC, Fox Corp.
Titles: Love Island, I’m a Celebrity… Get Me Out of Here!, My Mum Your Dad, Queer Eye, Showtrial, Rivals, Ludwig

Disclaimer: This article has been auto-generated from a syndicated RSS feed and has not been edited by Vitrina staff. It is provided solely for informational purposes on a non-commercial basis.