Love Island broadcaster ITV said it was on track to launch its ad-funded streaming service ITVX later this year as the firm appears unfazed by the cost-of-living woes that have battered competitors.
Revenue was up 16 per cent to £927m for ITV Studios, growing ahead of the wider market trends.
The firm also performed well across linear and digital, with the former giving ITV a 33.7 per cent share of commercial viewing in the UK.
Top dog Carolyn McCall said the data and tech investment made by ITV already “bearing fruit” withdigital ad revenue up 20 per cent thanks to record levels of streaming on the ITV Hub, up eight per cent with 814m streams.
McCall added that the firm had not seen any material impacts of economic challenges on consumers, nor a substantial impact on advertising budgets; this sets it apart from the likes of Netflix that have felt the wrath of subscribers switching off.
Spurred on by the success in digital, ITV said its free and ad-funded service was in the works, with the board estimating a return of at least £750m in digital revenues by 2026.
Third Bridge Sandeep Sharma said: “With subscription fatigue hitting consumers as the rising cost of living bites, ITV’s upcoming ITVX platform should allow it to gain additional digital advertising share.”
Nevertheless, the powerhouse warned that total ad revenue was set to dip nine per cent in July and 18 per cent in August as a result of difficult comparatives of last year’s Euros buzz for advertisers.
Again, the impact of this drop will tempered by the upcoming World Cup, which will drive ads in the fourth quarter and provide relief amid global uncertainty.
Shares climbed nearly three per cent this morning.