PROFITS at ITV were hit by slowing advertising revenues in the first half of the year, but shares in the broadcaster jumped as it reported growth elsewhere in the business.
A 34 per cent rise in turnover at the company’s production arm ITV Studios, thanks to hit shows including Titanic, drove an 11 per cent sales increase to £1.28bn despite the group describing advertising revenue as “flat”.
Boosts to other sources of income, including licensing and online ad sales, meant non-advertising revenue accounted for 40 per cent of ITV’s turnover.
Shares in ITV jumped by more than 10 per cent yesterday with pre-tax profits better than forecast, despite the drop from £181m to £167m.
Chief executive Adam Crozier said he expects the TV advertising market to stay “relatively flat” although ITV had outperformed the sector as a whole thanks to viewing figures during Euro 2012.
“Over the full year we expect ITV Studios revenues to grow at a similar rate to 2011 and to grow the ITV Studios share of ITV1 output,” Crozier said.