Shares in ITV continued their hard fall on Thursday after the broadcaster revealed that ad revenues nearly halved, the key revenue driver for the broadcasting firm.
“Advertising revenue for the company was down by 43 percent during the second quarter of the year, this helped to contribute to a 50% fall in its half-year profits.” “While our two main sources of revenue – production and advertising – were down significantly in the first half of the year and the outlook remains uncertain, today we are seeing an upward trajectory with productions restarting and advertisers returning to take advantage of our highly effective mass reach and addressable advertising platform, in a brand safe environment.”CEO, ITV
For the first-half of the year, ITV reported adjusted EBITDA of £165m – significantly down on the £327m reported at the same period last year. This also means that there will be no interim dividend paid to shareholders.
One of the positives was that despite the growth in online video streaming more broadly, ITV saw its on total viewing figures up 4%.
ITV’s BritBox – a form of rival to Netflix has also shown some growth in the UK and US during the period.
ITV’s share price was down by 4 percent in early trading.