ITV shares open up three per cent on better than expected profits

ITV has reported a better-than-expected 16 per cent rise in first half adjusted pre-tax profits to £270m, with adjusted earnings per share up 15 per cent to 5.3p (release). Shares opened up over three per cent on the news.

This came despite an expected fall in advertising revenues, as significant growth in online, pay & interactive and ITV Studios drove non-advertising revenues up 11 per cent to £568m.

Chief executive Adam Crozier says ITV will continue to look at improving efficiencies while continuing to invest in further growth. ITV Family non-advertising revenues are expected to be broadly flat for the nine months to the end of September, while double digit revenue growth is expected from both ITV Studios and Online, Pay & Interactive for the full year.

In spite of monthly volatility we expect ITV Family NAR to be broadly flat for the nine months to the end of September, with July up 12%, August up 20% and September broadly flat.