ITV has released encouraging figures in its interim management statement. Total revenue for the nine months ended 30 September rose by five per cent and non-advertising revenues climbed 11 per cent to £810m.
Broadcast & online revenues were up three per cent, driven by a one per cent rise on non-advertising revenues. Online, pay and interactive increased by 17 per cent, while ITV studios revenues were up 11 per cent. The company's cost savings reached an impressive £25m in 2013, around £5m above the original target.
ITV expects ad revenues to rise by around two per cent over the full year.
Chief executive of ITV, Adam Crozier, said:
We continue to make good progress with our strategy of growing and strengthening ITV both creatively and commercially, and all parts of the business are performing well.
he television advertising market is showing signs of improvement, which will benefit the core Broadcast business, and we expect to deliver double digit revenue growth in Online, Pay & Interactive.
The greater-than-expected advertising forecast, combined with the efficiency of the television networks cost-cutting programme, has already been welcomed by analysts, who expect to the see the company grow further.
Paul Richards, analyst at Numis Securities, said:
We have been greatly impressed at how ITV has built ITV Studios by organic development and bolt-on acquisitions over the past few years.
We remain firm supporters of ITV, reflecting our positive stance on the UK economy and excellent execution from the management team.