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Big rise in profits for ITV
onecitizen
Posts: 5,042 Forum Member
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Due to an increase in advertising and an increase in earnings from ITV's production business, ITV studios.
http://www.bbc.co.uk/news/business-28559300
http://www.bbc.co.uk/news/business-28559300
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http://forums.digitalspy.co.uk/showthread.php?t=1742854
These very good ITV profit figures suggest that thread is a bit redundant.
No because the ratings are down if you read it and they blame itv 2 and itv3
That implies an incredibly strong mix improvement / improved sales performance.
Would be interesting if anyone who understands this properly could have a go at explaining how that has been achieved.
World Cup would be an obvious factor but on its own that could only account for a small amount of the divergence.
Advertising revenue is up and the share of commercial viewing is up. So the crisis isn't really a crisis is it? If it it it's a crisis many businesses would like.
The real hit to the revenues of itv is the strength of sterling when it has an increasing revenue stream from both dollar and euro countries but that's a bit too abstract for DS
Just look at five being dropped by an advertising house recently and being no longer considered a must buy for brands such as mcDonalds. Share % is important but it's not the be all that the DS threads always make it out to be. It's about delivering the audience that advertisers want and at the times of the year when advertisers want them.
Try selling ice cream in February. You probably could sell quite a bit if you drop your price to close to zero but you ain't going to make any money given the costs of your inputs. Selling it in July in a heatwave though and you make a killing. Tv advertising is a lot like that.
But ratings go up and down and if ITV can increase profits despite one or two of their channels showing slightly smaller ratings this would suggest that they have revenue streams from a greater variety of sources than ever before.
From a commercial point of view ITV are in a strong position.
"ITV has said it is on track to post a fifth successive year of double-digit profit growth, with interim results for the six months to the end of June revealing an 11% rise in profits to £322 million."
http://www.thestage.co.uk/news/2014/07/itv-revenues-profits-half-year-results/
Oh sure - that's all obvious - but what has changed this year to allow ITV's share of ad market to grow despite ITV's SOCI being down 7%?
We've got two things on the list so far - ie World Cup (providing much better mix) and the ad house dropping C5 but there must be other factors.
By the way do you have the stats for share of commercial viewing? Not saying you are wrong but ITV share of total viewing is down from 23.2% to 22.1% so BBC would have to be up about 1.5 percentage points for ITV share of commercial viewing to be up.
Of course I realise, as you point out, that share of commercial viewing is only a part of the story - as these results show! But at the same time it shouldn't be ignored - less sport going forward may well send the mix movement the other way in future.
http://www.yourmoney.com/your-money/news/2357962/itv-upgraded-after-dividends-give-cause-for-cheer
Last night I noticed that at the end of Ramsays Kitchen Nightmares, it now says "'ITV Productions America".
I'd never heard of it before, when did this start?
Not much.
Total revenue is up £81m.
Within that, Online, Pay and Interactive revenue (combined) is up £11m.
The increase in revenue from Sky will be a relatively small component of that £11m - so a tiny component of the total revenue increase.
Evidence:
ITV Family SOCI: 36.6% (2014)... 39.2% (2013)... (-7%)
http://www.itvplc.com/media/news/itv-plc-interim-results
Itv main channel's ratings share is down 3pct from last year to only 15.8pct, their worst ever start to a year.
SOCI is share of commercial impacts, not share of commercial viewing.
I've already asked for clarification in post 10.
ITV SOCI is down 7%
ITV share of total viewing is down 5%.
I haven't yet seen the figure for share of commercial viewing but if BBC is up (which I suspect it is) then ITV's share of commercial viewing performance will be better than its share of total viewing performance.
Not saying that ITV's share of commercial viewing is up - I suspect it isn't - as I said in post 10 - but I don't think we actually have the figure (yet).
Ramsay's Kitchen Nightmares and Hell's Kitchen USA are both ITV productions and have been since their first series. In fact all Gordon Ramsay shows outside the UK are ITV productions or co-productions (and they probably would be in the UK if he hadn't had a pre-standing UK exclusivity deal with Channel 4 when he signed with ITV).
The thing that strikes me is that most of the analysts think Liberty Global buying 6% of ITV increases the chance of M&A, whereas BSkyB sold those shares because it needed cash to go on its own shopping trip.
Profits are what commercial companies require to continue to invest and because of these ongoing profits the future of ITV is assured.
Thanks for the insight arius.
I'd not noticed that Ramsays Kitchen Nightmares USA was made by ITV Productions America before now. Does anyone know long have they been in existence?
M&A
Tired and old programmes milked to within an inch of their life. When the ITV crash comes it will be spectacular.
Quite a while to be honest the Jeremy Kyle shows were branded the same and before the itv studios logo was adopted there was already a Granada America Brand
How will they crash when they are making better profits year on year ?
I don't understand the logic of your argument.
The guy thinks it's still 1977. Can't get that content ownership is now key. Stuck in the past totallly
How the hell are they asset stripping when they are sprnding a fortune buying content providers. They guy is a broken record
It puzzles me that the argument is that ITV are asset stripping when they are spending on new studio production facilities.
Surely this is asset investing..
I think a stake in ITV gives LibertyGlobal a little influence in any future consolidation. In an interview with the Wall Street Journal, John Malone of Liberty said, "In the [case of ITV] it looked like a good investment and would enhance our relationship with ITV and its management. They have a very large production studio whose output could be very interesting with respect to program needs in other jurisdictions."