ITV Studios delivers record profit

Despite a group revenue dip of 3%, ITV’s profits soared in 2024 thanks to record performance from producer-distributor ITV Studios and major cost savings totalling £60m.

The broadcaster recorded £472m in profit before tax, a jump of around a fifth from 2023’s £396m total.

ITV’s production and distribution arm ITV Studios boosted its EBITA by 5% to £299m, with a margin of 14.7% compared with 2023’s 13.2%, benefitting from format and catalogue sales as well as £25m in cost saving efficiencies.

However, ITV’s group total revenue dipped to £4.1bn across its full year results for 2024, compared with £4.3bn the year before, with growth in advertising revenue offset by a decline in ITV Studios’ revenue. The group’s external revenue also dipped by 4% at £3.5bn.

ITVS’ total revenue was down 6% to £2bn which had been forecast due to the impact of the US actors and writers strikes as well as a softer demand from free to air broadcasters and the phasing of deliveries.

ITV Studios’ profits jump registered an adjusted EBITA rise of 11% for 2024, reflecting both ITV Studios and growth in M&E (Media and Entertainment) profits and margin.

ITV’s profit increase was bolstered by a further £60m cost-savings at the broadcaster in 2024, £10m higher than planned.

Of this, £20m was delivered through its £150m efficiency programme – which it said is now completed a year early.

£40 million of savings came as part of the “ongoing transformation and efficiency programme”, and has resulted in ITV being able to fund “growth investments, offset inflation and improved our margins”.

The broadcaster plans to deliver a further £30m of non-content cost savings in 2025.

ITV’s chief executive Carolyn McCall said that ITV’s profits “despite the one-off impact of the writers and actors strike and softer demand from free-to-air broadcasters, reflects the strength, scale, diversification and creativity of ITV Studios production companies across the world.”

Among its successes, ITV Studios delivered the drama Mr Bates vs The Post Office which became the biggest drama of 2024 as well as Netflix series Fool Me Once which became one of Netflix’s most watched shows of all time while in unscripted Love Island USA became the number one reality series in the US.

Earlier this month, analysts placed a £3bn valuation on ITV Studios with investors reportedly broadly supportive of moves to sell its production and distribution arm.

ITVS is expected to deliver strong revenue growth in 2025 with revenue and profit weighted into the latter half of the year.

Digital boosts M&E

Elsewhere, in the Media and Entertainment division revenue was marginally up by 1% at £2.1bn with total advertising revenue (TAR) up by 2%.

Within this, it was digital advertising revenue that rose the sharpest, growing by 15% while non-advertising revenue was down by 10%. Overall digital revenues were up by 12%.

The division’ own EBITA was up by 22% to £250m reflecting its TAR growth as well as £35m in cost savings delivered this year.

For its streaming platform ITVX, hours were up by 12% and monthly active users by 14%, driven by programmes such as Love Island and Until I Kill you.

The boosts to digital advertising has also meant that by the end of 2025, ITV is expected to have recouped its investment in ITVX, ahead of schedule.

McCall said: “Our efficiency programme has delivered savings which have funded growth investments, offset inflation and improved our margins. The programme is ongoing and will continue to be viewer led - driving efficiencies and prioritising our investment to best reflect viewer dynamics and attract both mass reach audiences on linear and targetable audiences on ITVX.”